Private Markets

Dry Powder

Definition

What is Dry Powder?

Committed but uninvested capital available for future deals.

Example in practice

The fund holds significant dry powder after a quiet deal year.

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Investment in privately held companies, often with active ownership and a multi-year exit plan.

Equity financing for young, high-growth companies with substantial uncertainty.

An individual who invests personal money in early-stage companies.

A preliminary document outlining the main commercial terms of a proposed investment.

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