PE dry powder

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The capital that is being raised is flowing overwhelmingly to the largest, most established managers. Funds under $1 billion have accounted for only 16.7% of all capital raised so far in 2026. The concentration is equally visible by manager pedigree. Experienced managers have pulled in $139.3 billion YTD, nearly 7x the $20.3 billion raised by emerging managers. First-time managers are finding it more difficult, with only 23 first-time funds raised in H1 2026—a collapse compared to the full-year average of 181 per year from 2021 to 2023. We believe this distribution shortfall is transmitted directly into capital formation. With LPs receiving fewer distributions, they have less capital to commit and a stronger incentive to concentrate what they do commit with managers whose track records are proven, leaving emerging and first-time managers to compete for a shrinking residual.