drypow178

Big Shifts in PE Dry Powder

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March 19, 2015

Dry powder, industry jargon for private equity capital raised but not invested yet, has shifted geographically and by type in recent years, according to new data from Preqin. There is now more capital poised to be invested in Asia (14%) than ever before, while the proportion for North America and Europe is shrinking (56% and to 24% respectively).

There is a shift over the last few years in the type private equity on the sidelines too. Typically buyout funds represent the largest proportion of private equity dry powder, however it is down from 46% of total dry powder to 38%, while an increase in dry powder is now evident in both infrastructure (now 9%) and natural resources funds (now 5%). The proportion of dry powder attributable to venture capital funds has also fallen. It went from 17% to 11% of total dry powder.

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