Portfolio strategy concepts

Dry Powder

Dry powder is capital a manager has raised but not yet deployed. Depending on the context, it can include uncalled commitments and cash held by the fund, so check the reporting definition. Reserves are the portion planned for follow-on investments.

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Knowing the language helps you follow the conversation. Knowing what to ask is how you participate in it.

Understanding the terms is a first step. The Aligned Capital Program uses them to teach you how to evaluate a fund and prepare the questions to ask its manager.

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