Dry powder: Difference between revisions
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Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure. | Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure. | ||
:<span style="color:#4B0082">'''''Private credit funds have dry powder'''''</span> | |||
:"PwC adds that private credit funds still have plenty of dry powder that they’re motivated to put to work. | |||
:'We estimate this to be more than €50bn across Europe at the latest count,' the firm says. 'We’ve seen them offering finance to some of the larger corporates as an alternative to the high-yield bond and leveraged loan markets. By clubbing together, private credit funds can provide significant levels of finance to large clients, while sticking within their individual credit ceilings.'" | |||
:''Refinancing costs rocket - Philip Smith - The Treasurer - Issue 2, 2024, p21.'' | |||
2. ''Mergers & acquisitions (M&A)''. | 2. ''Mergers & acquisitions (M&A)''. | ||
In context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions. | In the context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions. | ||
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== See also == | == See also == | ||
* [[Acquisition]] | |||
* [[Capital]] | |||
* [[Fund]] | |||
* [[High-yield bond]] | |||
* [[Leveraged finance]] | |||
* [[Merger]] | |||
* [[Near cash]] | * [[Near cash]] | ||
* [[Portfolio]] | |||
* [[Private credit]] | |||
* [[Reserves]] | * [[Reserves]] | ||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
[[Category:Investment]] | [[Category:Investment]] | ||
[[Category: | [[Category:The_business_context]] | ||
Latest revision as of 19:47, 11 May 2024
1.
Dry powder means cash or near-cash kept on hand by an organisation to meet future financial obligations or other expenditure.
- Private credit funds have dry powder
- "PwC adds that private credit funds still have plenty of dry powder that they’re motivated to put to work.
- 'We estimate this to be more than €50bn across Europe at the latest count,' the firm says. 'We’ve seen them offering finance to some of the larger corporates as an alternative to the high-yield bond and leveraged loan markets. By clubbing together, private credit funds can provide significant levels of finance to large clients, while sticking within their individual credit ceilings.'"
- Refinancing costs rocket - Philip Smith - The Treasurer - Issue 2, 2024, p21.
2. Mergers & acquisitions (M&A).
In the context of M&A, dry powder means the amount of capital that is available to financial or strategic buyers for investment in strategic acquisitions, portfolio companies or add-on acquisitions.
The term originates from the historical use of gunpowder in the military.
A reserve of dry gunpowder was essential to firing weapons.
