How PE Firms Typically Deploy Dry Powder
Platform deals dominate — but add-ons and follow-ons quietly absorb capital.
New platform investments52%
Primary use of dry powder in classic buyout pacing.
Add-on acquisitions28%
Bolt-ons that compound an existing platform thesis.
Follow-on equity12%
Protective or growth capital into current holdings.
Bridge / short-term uses8%
Temporary funding, facilities, or opportunistic bridges.
If a GP says they have “plenty of dry powder,” ask what share is reserved for add-ons and follow-ons before assuming they can lead your process.