Huge piles of Private Equity dry powder will lead deal-making
'Compared to the 2008 global financial crisis, access to capital will not be a problem as the US PE and strategic investors alone are sitting on almost $ 5 trillion of dry powder which needs to be deployed in some form'
Mumbai: For one, there is heightened due diligence seen from buyers to deal with specific issues arising out of Covid-19. There are also concerns being raised on valuation erosion, and if that will become a permanent feature. On the brighter side, experts Rajat Mukherjee and Rabindra Jhunjhunwala (partners with law firm Khaitan & Co) remain hopeful that the huge amount of dry powder (uncalled capital) that private equity investors are sitting on will reignite deal-making and unlike the other crisis of the past, access to capital will not be a problem.