Private equity firms have billions of money to spend, but there are few targets left attractive enough for them to pull the trigger. However, some say the tide is finally starting to change.
According to Preqin, at the end of 2023, private equity dry powder, that is, unspent capital, reached approximately $2.59 trillion (CHF2.27 trillion) after significant amounts of money were raised by the likes of CVC Capital Partners. which collected 26 billion euros. for its buyout fund, and Clayton, Dubilier & Rice with its $26 billion vehicle.
Add to that the money that sovereign wealth funds have set aside for direct deals, and you have a lot of capital waiting to be tapped.