Distressed Private Equity Dry Powder

by Ben Formela Osborne

  • 10 Feb 2010
  • PE

Fund Manager Profiles is the most extensive, detailed source of information on private equity fund managers in the world. Preqin’s comprehensive product not only contains thorough profiles of over 5,000 private equity firms around the world, but also current and historic private equity dry powder levels across the globe by region and fund type. Isolating distressed private equity dry powder data, we can reveal that between December 2004 and December 2007, global distressed dry powder increased from $18.7bn to $59.9bn. As of January 2010, this figure stood at $42.5bn.

In terms of fund strategy, distressed debt funds have consistently held the largest amount of distressed dry powder, followed by special situation funds and turnaround funds. As of January 2010, the estimated dry powder at the disposal of distressed debt fund managers is $27.5bn, $10.2bn is available to special situation funds, and $4.6bn to turnaround funds.

Preqin’s league tables reveal that of all distressed private equity firms, Los Angeles-based Oaktree Capital Management has the most distressed private equity available, with $5.5bn currently on hand. Bayside Capital ranks second in the list with $2.3bn of estimated dry powder available. Special situation specialist Crestview has the next largest amount of distressed dry powder with $2.2bn available to the New York headquartered firm.

For further information on private equity fund managers and dry powder levels across fund types and regions, please see our Fund Manager Profiles product.

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