Buyout Dry Powder

by Raffaela Mirai

  • 23 Dec 2009
  • PE

Preqin's data reveals that the amount of buyout dry powder available globally has increased year on year between December 2004 and December 2008, increasing from $178 billion to $501 billion. This growth slowed in 2009 and, as of December 2009, there is an estimated $504.28 billion in buyout dry powder available globally.

With $279.5 billion as of December 2009, US focused buyout funds have the largest amount of dry powder available. European focused buyout funds have an estimated $163.25 billion in dry powder, and Asia and Rest of World focused buyout funds have $61.5 billion.

Further investigation into Preqin’s data shows that mega buyout funds, with capital commitments of over $3.5 billion, have seen levels of dry powder increase drastically between December 2004 and December 2009 from $45.9 billion to $253billion. Large buyout funds, with capital commitments between $1 billion and $3.5 billion, have also seen an increase in dry powder from $58.9 in December 2004 to $133.69 as of December 2009. During the same time frame, mid market buyout funds experienced an increase in estimated available capital from $48.4 billion to $88.6 billion. Dry powder for smaller buyout funds has not seen the same growth as larger buyout funds.  Between December 2004 and December 2009 the estimated available capital for buyout funds, with capital commitments less than $300 million, has increased from $22.6 billion to $27.6 billion.

More information on private equity estimated dry powder is available on Preqin’s online database Fund Manager Profiles.

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