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1/x facts
$2.409T in dry powder IS NOT just PE; it’s ALL private strategies, regions, & vintage years. In private equity (1st bar):
1. Docs often req deploy <5yrs (~’15-‘19 vintages)
2. ~80% per yr designated ‘buyout’
2. ~70% of that is U.S.
US PE dry powder = $600B - $800B
$2.409T in dry powder IS NOT just PE; it’s ALL private strategies, regions, & vintage years. In private equity (1st bar):
1. Docs often req deploy <5yrs (~’15-‘19 vintages)
2. ~80% per yr designated ‘buyout’
2. ~70% of that is U.S.
US PE dry powder = $600B - $800B
2/deploying dry powder challenging:
* Teams focused assessing current portfolio co financials/impact.
* direct lending (private credit) wants cash infusions for sponsor backed firms for concessions
* onsite DD w/ new teams & companies nearly impossible
* Teams focused assessing current portfolio co financials/impact.
* direct lending (private credit) wants cash infusions for sponsor backed firms for concessions
* onsite DD w/ new teams & companies nearly impossible
3/x soapbox
I get that you may be angsty re ‘greedy’ PE-backed firms benefiting from gov’t stimulus, but PE is not limitless and the $$ at risk belongs almost entirely to 501c3 & pensions
Plus, you prob own an index fund, so enjoy your airline & retail, &etc bailouts
I get that you may be angsty re ‘greedy’ PE-backed firms benefiting from gov’t stimulus, but PE is not limitless and the $$ at risk belongs almost entirely to 501c3 & pensions
Plus, you prob own an index fund, so enjoy your airline & retail, &etc bailouts
4/ w/that said investing in equity, public or private, has (historically) been handsomely rewarded. But investors accept risk as part of the rules of the game. While a novel global pandemic is a true black swan, why is it unpopular to say that equity should get wiped out?
