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“In the ever-evolving landscape of private equity, one term has consistently captured the attention of investors and analysts alike: dry powder.”

“This financial jargon, referring to the capital that private equity firms have raised but not yet invested, has seen a remarkable surge in recent years.”

“Some of the dry powder buildup is driven by disparities between buyers and sellers. So, a buyer thinks a company is worth x, and the seller thinks it’s worth y, and the deal hasn’t gotten done, because they can’t agree on valuations.”

“These discrepancies have led some firms to hold onto investments for longer periods, further contributing to dry powder buildup.”

“The key to successfully deploying dry powder, according to Gillston, involves identifying and investing in companies that align with market trends and exhibit robust growth potential.”

 

Link: What are the top trends in private equity? | Insurance Business America (insurancebusinessmag.com)

Image reference: Free Photo | Photorealistic money with plant (freepik.com)

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