Fund Structure
What is Dry Powder?
Dry powder is committed capital that a fund has raised but not yet invested. High dry powder across the industry means there is a large amount of capital waiting to be deployed into deals.
Dry powder refers to the capital that has been committed to funds but remains uncalled and uninvested — money the GP can still put to work. It is a closely watched private-markets indicator because large dry-powder balances signal future deal demand and can drive up asset prices.
At the individual fund level, dry powder is the difference between total commitments and capital already deployed.