Partner Richard Dagett provided commentary for Citywealth
earlier this month on current trends and prospects for the private
equity market. Here are his full comments.
It is said that even though the Private equity industry
is in triage, it can survive any capital calling because it has
enough dry powder?
As is always the case, dry powder is not just for the high
profile acquisitions – it is what transforms a target's
potential into realisation. The ongoing investment by funds into
their portfolio companies is what generates the long term returns
on exit. However, that use of dry powder is not always about the
growth of a company – sometimes it's about keeping that
company going during tough times.