Mergers and acquisitions companies always keep a close eye the activity levels of private equity firms and how much capital they have to work with also known as “dry powder”.  Today, Pitchbook is out with a report discussing the ongoing growth of private equity firms dry powder, estimated at $477 Billion Dollars, which has increased each year until 2009.  Approximately 75% of that money is sitting in funds that were set up between 2007 – 2009.  The availability of these PEG funds has enabled mergers and acquisitions companies to participate in some very large transactions.  However, as that dry powder waits around to be used in a deal, so do the investors sit idle waiting for returns before committing more capital.  To learn more download the US PE Capital Overhand Brief (You will need to enter name & email address)

 

One Response to Mergers and Acquisitions Companies

  1. […] EBay’s merger and acquisition of Braintree for $800 million is a nice bolt on for Paypal but why not pay $1 billion?  After all that seems to be the magic number these days. […]

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