Private equity dry powder will likely spur M&A opportunities

Deal making got off to a slow start in 2023 with rising interest rates, persistent inflation and economic uncertainty continuing to weigh heavily on transactional activity. Private equity firms are sitting on approximately US$2 trillion of dry powder for private equity transactions. Despite recent challenges, these available cash reserves and highly liquid securities make deal makers hungry for mergers and acquisitions.

This article, first published in Law360, examines the factors that created a record amount of dry powder, caused by private equity firms raising hordes of liquidity from their investors, even though such firms have been unable to invest the money into viable companies. The article also discusses M&A opportunities for these firms, such as corporate valuations rising after the pandemic, distressed opportunities in cross-border transactions and all-cash deals. 

Read the entire Law360 article, "Private Equity Dry Powder Will Likely Spur M&A Opportunities." Also, download Norton Rose Fulbright’s global M&A trends and risks report for more insights on this and other M&A topics.