The Pulse of Private Equity – 3/7/2022

Private debt overhang drops

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The cumulative capital overhang for the private debt industry dropped for the first time in more than a decade, according to PitchBook’s Annual Global Private Debt Report. It’s another indication of how accelerant today’s PE market is, considering almost $1 trillion of private debt capital has been raised over the past five years. Between 2020 and 2021 vintages, about $256 billion in dry powder is at the ready, $200 billion of which is stored in $1B+ funds. Sub-$1B funds hold the remaining $55.8 billion, less than 30% of the total.