Visualizing $2.5 Trillion in Private Equity Cash Reserves

Will Private Equity drive the M&A recovery?

A record $2.5tr in Private Equity (PE) cash reserves are waiting to be invested. This dry powder could spur a rebound in M&A with broader impacts across the economy. PE firms deploy this cash to acquire private companies ripe for growth, with the goal of driving higher valuations. Historically, a higher store of cash has been strongly linked to greater PE deal activity.

Since 2000, global PE cash reserves—also known as dry powder—have grown at a 12.7% compound annual growth rate. This capital has been a key source of growth and funding for companies, with PE making up roughly 40% of the global M&A market.

To read more, click here.