Back to Blog

The Dry Powder Paradox!

$2.6 trillion in private equity dry powder is sitting idle right now.

[SOURCE: Preqin Global Private Equity Report 2025]

Not because there aren't enough deals.
Because there aren't enough hours in the day to analyze them.

The bottleneck in private capital markets isn't capital.
It's cognitive bandwidth.

The numbers tell a brutal story:
→ 80% of analyst capacity diverted to manual data extraction
→ 82% of relevant deals never reach the PE firm's pipeline
→ €58B in wasted global PE operational expenditure — every year

This is not a capital allocation problem.
It's a velocity collapse problem.

Private capital markets are flooded with data, talent, and capital.
Yet lack the velocity to turn it into decision-ready investment conviction.
Not from bad deals. From slow ones.

The firms winning in 2026 aren't the ones with the most capital.
They're the ones who can move from data room to decision memo fastest.

The next great PE firm won't just be better at picking companies.
It'll be better at processing information with Clarenza AI

“90% of our job is digesting financials like P&L, balance sheets and cash flows. It's very time-consuming.”
— Gerardo, Investment Manager

“Our associates and analysts usually spend 40% of their time building models and pitch decks.”
— Wojtek, Investment Manager