GPs may be amenable to spending more, given the greater accumulation of aging dry powder at their disposal. Indeed, the share of dry powder two years or older (approximately 40 percent) hit a new peak in June 2025, compared with the midyear levels of the last seven years (Exhibit 4). We suspect that some GPs may feel the pressure to deploy these funds, leading to increased willingness to deploy equity into deals and at a higher percentage. a flight to quality, where we see GPs willing to pay premium multiples for durability and downside protection in an uncertain macro environment. All this has important consequences: The more an acquirer pays at entry, the greater its need to deliver material, operational value creation. increase in leverage. Even as financing costs have eased, buyers are contributing more equity 45 percent of returns between 2010 and 2022) to produce outsize returns. The dry powder available to GPs is aging. points in 2025, stillower than 2020 levels when spreads were at 199 basis points Global Private Markets Report 2026: Private equity-Clearer view, tougher terrain