Industry Dynamics: Dry Powder and Rising Valuations

Industry dynamics continue to be defined by elevated levels of dry powder and rising entry valuations. Over 50% of global dry powder is more than two years old, increasing deployment pressure; U.S. dry powder exceeds $1 trillion; and the "Big Six" managers hold approximately $211 billion of that capital. In 2025, median purchase multiples climbed to 11.8x EV/EBITDA, up from 11.3x, signaling a more expensive entry environment in which managers need to drive value through operations rather than leverage or multiple expansion. This increasingly shifts value creation toward operational improvement, EBITDA growth, and manager execution.

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