Global Private Equity Firms With The Largest Amount of Dry Powder 🤯 Here's the top 10: 1. Apollo Global Management, Inc.: $55.1bn 2. KKR: $43.2bn 3. CVC Capital Partners: $39.4bn 4. Ardian: $30.8bn 5. Blackstone: $29.0bn 6. The Carlyle Group: $26.9bn 7. Hellman & Friedman: $24.0bn 8. Clayton Dubilier & Rice: $24.2bn 9. TPG: $23.2bn 10. Bain Capital: $21.7bn The latest figure sits at $3.9 trillion after growing at an eye-watering 10% CAGR over the past decade. Firepower.
And "dry powder" delivers an LP return of...?
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Wouldn't call it dry powder. Actually it is a very costly powder. Committed capital costs a lot of money. The question is "why is there so much committed capital" available and what are the fund managers waiting for? (they know it will be much cheaper to buy assets in the future)
Dry powder?
It's an interesting see that there's so money sitting idle in venture capital funds, and it raises important questions about the dynamics of VC investment. Here are a few reasons why VC companies might be hesitant to invest their capital: 1 : Market Conditions and Economic Uncertainty: 2 : Stringent Investment Criteria: 3 : Quality Over Quantity: 4 : Due Diligence Process: 5 : Fundraising Cycles: 6 : Shift in Focus: 7 : Portfolio Management: 8 : Regulatory and Compliance Issues: 9 : Waiting for Valuations to Adjust: 10 : strategic move. While it may seem counterintuitive for VC funds to have money sitting on the sidelines, these factors contribute to their investment strategies. Ultimately, the goal is to maximize returns for their investors by making prudent, well-timed, and strategic investments.
As equity firms search for higher returns they will also try to outperform their competitors. There will be first mover advantage to those that allocate this “Dry Powder” to Bitcoin. What many institutions fail to realise is that Bitcoin has ticked 5 out of the 6 main characteristics of money ( what makes something called a money) the only missing characteristic is “adoption”. The next 12-18 months will see Bitcoin go from 400m users to 4 billions users. Remember there are 3 billion users on Facebook which is not a currency but a social app and still growing at 5% per year.
While these are all amazing amounts of dry powder, something that blows my mind is that, by these standards, Apple, at $67.15B of cash and cash equivalents and a market cap of ~$3.4T, would be the biggest.
Quite intersting Eddie Donmez. I guess to add perspective, percentage of ttl. AuM per PE firm would provide further insight also when viewed over time. Plenty of cash/ capital to be deployed on opportunistic yet strategic investments in depressed assets now or yet to come. As it‘s been said: The money is not lost - just the ownership has / will be changed at different valuation points.
Thanks for sharing💡🤠
VP Business Development | Fundraising Specialist | Private Capital Expert | Strategic Planner
2wAnother important point to consider is the amount of dry powder within the GP total Private Equity AUM. This helps in understanding what is healthy amount of dry powder ratios