News From The Middle

Published on: 09/25/2012

Today’s headline story in private equity remains the massive capital overhang – or dry powder as we like to call it – that private equity groups have available for investment purposes. Following record fundraising years in 2006, 2007 and 2008, the overhang, which is the gap between funds raised and equity invested, widened. Although they have been chipping away at the reserve for several years now, private equity firms still have more than $432 billion to invest, and they are actively seeking quality targets for these funds.