Private Equity Builds $722 Billion War Chest in Hunt for Deals

  • Executives say deal market is back ahead of expected rate cut
  • Firms under pressure to return money to fund investors

Private equity dealmaking has picked up in recent months as more firms get comfortable deploying capital.

Photographer: Michael Nagle/Bloomberg
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The biggest publicly traded alternative asset managers have more than a half-trillion dollars to put to work — and they’re gearing up for a deals comeback.

Seven of the firms reported a collective $722 billion in dry powder as of June 30 — a 9% increase from a year earlier, according to earnings data compiled by Bloomberg. Now that the Federal Reserve is expected to cut interest rates, money managers have extra firepower to make deals again.