If you think of this on a supply & need basis, the supply of capital has increased significantly. The implication from this is that there's a lot of sitting with the private equity firms. Dry powder is generally the cash that the private equity funds have raised but have not invested.

It doesn't look helpful for the private equity firms to charge the LPs their outrageous fees if the money is simply being in the bank. Companies are ending up being far more sophisticated also.…