AF Advisors’ consultant Guido Corbeau has published an article on IEXProfs about private equity. In the article, Guido states that the industry currently has around USD 1 trillion in dry powder.
Private equity is an interesting alternative asset class due to its high returns and relatively low levels of correlation with public equity and fixed income markets. The strong track record attracted substantial inflows in the recent years which resulted in a lot of dry powder, i.e. non-invested assets of private equity funds. This means that the private equity funds rather wait for good investment opportunities than invest in less promising companies.
Read the full article (in Dutch) here.