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Buyout Dry Powder

by Louise Maddy

  • 21 Sep 2011
  • PE

Preqin’s Fund Managers data indicates that the volume of estimated global buyout dry powder increased significantly between 2004 and 2008; USD 176.2bn was available in December 2004 and USD 492.4bn in December 2008. However, estimated dry powder for buyout fund managers has decreased since 2008, with USD490.5bn available in December 2009 and USD388.1bn as of September 2011.

In terms of estimated dry powder by region, North America-focused buyout funds have the most available, with USD200.2bn as of September 2011. This is USD 43bn less than in December 2010. European-focused buyout funds are sitting on USD 134bn of dry powder as of September 2011, down from its peak in December 2008 when buyout funds focused on this region had an estimated USD 167bn available. Buyout funds focused on Asia and Rest of World have an estimated USD 53.7bn worth of dry powder to draw from as of September 2011. This is a small decrease on the USD 54.4bn available as of December 2010.

Preqin’s league tables reveal that, of all private equity buyout firms, Blackstone Group has the most dry powder available, with an estimated USD 15.1bn on hand. Carlyle Group ranks second with an estimated USD 13.4bn available. Goldman Sachs Merchant Banking Division has the next largest amount of estimated dry powder available, with USD 11.0bn.

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