Private equity "dry powder" hits record high
LONDON Dec 19 (Reuters) - Private equity firms are sitting on a record $1.074 trillion in unspent capital, data showed on Thursday, highlighting the tough task the industry faces in finding opportunities for all the money it has raised.
According to industry tracker Preqin, the volume of "dry powder" - money pledged by investors to private equity firms but still yet to be invested - has surpassed the previous high of $1.067 trillion reached at the end of 2008.
Preqin said that while private equity exits - the sales of companies - had risen in 2013, new deal volumes have remained relatively flat for three years, at around $265 billion.
Aggregate global private equity dry powder increased 14 percent over the past year, Preqin said.
Large unspent pools of capital raise the prospect that buyout firms will have to ask investors for more time to do deals or not use the money at all. (Reporting by Tommy Wilkes; Editing by Elaine Hardcastle)