NEW YORK CITY-The Deal Economy 2012 Conference kicked off Thursday morning with a spirited discussion between Bain Capital’s Stephen Pagliuca and Vornado Realty Trust’s Michael Fascitelli. CNBC’s Kayla Tauche moderated the discussion—“30 Year Retrospective in Dealmaking.”

Pagliuca and Fascitelli, classmates at Harvard, spoke about the private equity environment when they first left school.

“Private equity was a couple of firms—very few people doing this practice,” Pagliuca said. “It was much more venture capital. The industry really evolved.”

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