Internet
dry powder
What does dry powder mean?
Dry powder is uninvested cash that investors or funds hold in reserve so they can move quickly on opportunities without having to sell existing holdings. Private equity and VC firms track it closely.
"The fund still has billions in dry powder to deploy if the market corrects."
Origin
From military usage where soldiers kept gunpowder dry so it would fire when needed. Applied to ready capital.
Frequently asked questions
What is dry powder in finance?
It's uninvested cash that investors or funds keep in reserve so they can move quickly on opportunities without selling existing holdings.
Who tracks dry powder?
Private equity and venture capital firms track it closely, since committed but undeployed cash represents buying power waiting on the sidelines.
Where does the term come from?
From military usage where soldiers kept their gunpowder dry so it would fire when needed — applied to keeping capital ready to deploy.
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