Private Equity Dry Powder Recedes From All-Time Highs Amid Slow Fundraising
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Markit3.51K FollowersFollow5ShareSavePlay(5min)CommentsSummaryPrivate equity and venture capital's substantial dry powder reserves are a little lighter after an extended downturn in fundraising.Venture capital dry powder hit its year-end high in 2023, peaking at $743.9 billion globally, and was down 19% to $600.9 billion as of March 31.Shrinking dry powder reserves are a symptom of a challenging period for private equity and venture capital, but they do not tell the whole story.Geminder forecast that private equity's focus in 2026 would remain squarely on exits and boosting the flow of distributions back to investors. gonin/iStock via Getty Images Private equity and venture capital's substantial dry powder reserves are a little lighter after an extended downturn in fundraising. Global private equity dry powder — uncommitted capital available for new investments — stood at $2.184 trillion as of March 31. ThisThis article was written byMarkit3.51K FollowersFollowIHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.Quick InsightsHow has the decline in exits impacted private equity fundraising?Delayed exits have slowed distributions to investors, limiting their ability to commit fresh capital and prolonging the fundraising slump.What is the outlook for private equity fundraising in 2026?Fundraising is expected to remain subdued in 2026, with a meaningful rebound unlikely until after a track record of strong exits is established, likely post-2026.How are institutional and retail capital trends evolving in private markets?Institutional investors increasingly pursue coinvestments to reduce fees, while regulatory changes are paving the way for more retail capital via evergreen fund structures.Recommended For You