Bridger PenningtonFund Launch & Investment Expert

Dry powder in Private Equity just hit a record high $2.49 trillion🤯

3 Oct 2023 · 1 min

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Private equity firms are sitting on a record $2.49 trillion in uninvested capital. Rising interest rates and a slowdown in deals over the past 18 months created this buildup, and managers under pressure to deploy cash may rush into investments before the 2024 election.

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Private equity just hit a record $2.49 trillion in dry powder. Now dry powder is money on the sidelines not yet called or deployed into markets, and they've been waiting. I mean, you have interest rates going up so much, their cost of debt is going higher, there's not a lot of deal activity, and money is burning a hole in their pocket, and fund managers are incentivized to invest. So we'll see over the next little bit going into the 2024 election if they start dumping money into deals, 'cause they are incentivized to put money into these deals and haven't done very many deals the last 18 months.