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Private Equity Venture Capital - Dry Powder

Preqin data shows that there is an estimated $1.07 trillion in dry powder available globally, as of October 2009. Having broken down this figure to expose available capital by type, the upcoming October edition of Preqin private equity spotlight looks at the dry powder available to venture investments.

Spotlight reveals that venture capital firms currently boast an estimated $155 billion in dry powder, which is an 8% increase on the $144 billion recorded at the same point in 2008. When examining venture types, Spotlight shows that generalist venture dry powder increased by $14 billion to $77 billion from December 2003 to the present, peaking in December 2007 at $88 billion. Expansion funds increased fivefold to $35 billion in October 2009. The amount available to invest for late and early stage managers from December 2003 to October 2009 increased more modestly, by $3.5 billion to $9 billion, and by $5 billion to $35 billion respectively.

Preqin’s research also scrutinises dry powder data by macro-region, showing that available capital for US venture firms has undulated around the $80 billion mark for the past seven years. Current dry powder for venture investments in Europe represents an all-time peak for the region, with almost $27 billion available as of October 2009. Moreover, the Asia and Rest of World region has witnessed the largest increase in estimated available venture capital since December 2003, rising threefold to $46 billion.

For a comprehensive, detailed source of information on private equity fund managers, and more information on current and historical dry powder levels across fund types, regions, and across fund sizes, please see our Fund Manager Profiles product.

Posted by Ben Formela Osborne on 14-Oct-2009

Keywords: private equity, private equity dry powder, private equity venture, venture dry powder, venture firms