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Distressed Private Equity Funds Dry Powder

by Raffaela Mirai

  • 11 Nov 2009
  • PE

In our forthcoming November edition of Preqin Private Equity Spotlight, our free monthly newsletter covering the global private equity industry, we look at the amount of dry powder available to distressed private equity firms in an in-depth article.

Our analysis reveals that the amount of distressed private equity dry powder available globally has increased steadily between December 2004 and December 2008, with the amount of dry powder available to distressed private equity firms increasing from $18.7 billion to $60.7 billion. However, as of November 2009, the upward trend has stopped and estimated dry powder currently stands at $44 billion.

In terms of distressed private equity dry powder by fund strategy, distressed debt funds have persistently possessed the largest amount of dry powder, followed by special situations funds, and turnaround funds. As of November 2009, there is an estimated $30.7 billion of distressed private equity dry powder available from distressed debt funds, $8.9 billion from special situations funds and $4.4 billion from turnaround funds.

Preqin’s data shows that US-based distressed debt firm Oaktree Capital Management has the most dry powder available to distressed fund managers, with $5.2 billion currently available to the firm. With $3.8 billion in estimated available dry powder, Avenue Capital Group is the second largest distressed fund manager, followed by US-based Bayside Capital with $2.5 billion in dry powder.

All of the data used in this blog is taken from our fund manager profiles. For more information please visit our Fund Manager Profiles.

 

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