It can be uncomfortable, having money burning a hole in your pocket. Pity the private equity industry, then, which has more than $1,000bn in so-called “dry powder” ready to spend, estimates Preqin, a consultancy. Blackstone alone has about $29bn of uninvested capital across its private equity, real estate and credit businesses, the most in the company’s history. If deployed wisely, these cash piles represent substantial future earnings power. A dearth of opportunities to spend them, however, suggests an industry in limbo.

Banks’ continued woes are the main reason the cash remains uninvested. Blackstone produced better-than-expected results last week after rallying markets boosted valuations of its current investments. Yet it was wary about its ability to spend in the remainder of the year because banks remain reluctant to lend for buy-outs. Whereas banks might previously have sold on about 80 per cent of these leveraged loans, the universe of potential buyers, such as hedge funds, has shrunk. Securitisation also remains difficult.