|
Laxman Pai, Opalesque Asia: Global private equity dry powder levels rose more than 11% in just six months to a record $2.49 trillion around the middle of 2023, said a study.
According to S&P Global Market Intelligence and Preqin data, that cache of uncommitted capital is growing at least in part because private equity firms are not finding ready opportunities to put it to work.
The global dry powder total as of early July represented a greater than 11% increase over the December 2022 total of $2.24 trillion, the study explained.
A challenging fundraising environment did not halt private equity funds' accumulation of investor capital.
The buildup of dry powder is happening at a time when private equity investment opportunities appear scarce, with private equity entries falling 53.5% year over year to $98.48 billion globally in the second quarter. That followed a first quarter in which the value of private equity entries was off 48.6% from its prior-year total.
The uncertain global economic outlook and rising transaction costs linked to high-interest rates and a greater level of regulatory scrutiny for private equity deals, particularly in the US, are among the impediments to dealmaking, said Andrea Guerzoni, EY global vice chair for strategy and transactions.
Just 25 top private equity firms held 19.5% of the midyear dry powder total. Nineteen of those firms were headquartered in the US, including nine of the top 10 firms with the most dry powder as...................... To view our full article Click here
|
RSS
