Give LPs, founders, and associates a one-screen definition they can reuse in memos.
Dry Powder Equation
The Carta-style mental model: commitments minus capital called.
Example fund: $100M committed, $40M called to date.
LP commitments
$100M
−
Capital called
$40M
Dry powder (uncalled capital)
$60M
Providers sometimes report strategy-level dry powder differently (buyout vs VC vs private credit). Always check as-of date and scope.
Audience: investor, lp, founder, operator · Category: fund-economics
Tags: dry-powder, fund-economics, equation, lp