Distressed Private Equity Dry Powder

by Adam Counihan

  • 21 Apr 2010
  • PE

Using data from Preqin’s Fund Manager Profiles, we can see that the volume of estimated dry powder available to distressed private equity firms increased each year from 2004 until 2007, rising from $19bn in December 2004 to $60bn in December 2007. This increase has since shown signs of reversing, however, and distressed private equity dry powder fell to $51bn for the year ending December 2008. As of April 2010, the figure stood at $49bn.

In terms of estimated distressed private equity dry powder by fund type, distressed debt funds are currently in possession of the most dry powder with an estimated $32bn, special situations funds are sitting on around $10bn and turnaround funds on about $6bn.

Preqin’s league tables reveal that, of all distressed private equity firms, Los Angeles-based Oaktree Capital Management has the most dry powder available, with an estimated $8.1bn on hand. Bayside Capital ranks second with an estimated $2.3bn available. US distressed debt firm, Centerbridge Capital Partners, has the next largest amount of estimated dry powder available, with an estimated $2.3bn.

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 detailed 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.

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