What trend is observed with dry powder in private equity?

The observed trend with dry powder in private equity is related to secondary buyers raising larger funds. This indicates a growing interest and confidence in the secondary market, where investors buy stakes in private equity funds from current investors. As private equity fundraising has surged over the years, significant amounts of capital, referred to as dry powder, are available for secondary transactions. This growth allows secondary firms to scale up their operations and offer larger funds to capitalize on the available opportunities, ultimately benefiting from the existing dry powder in the private equity sector.

The other options do not accurately represent the prevailing trends. For instance, while some investors may find public markets attractive, diverting funds in that manner doesn't capture the essence of the dry powder phenomenon in private equity. Similarly, liquidity in primary markets fluctuates but the defining feature in this context is not an increase in primary market liquidity, but rather the substantial growth of secondary market activities. Lastly, while there may be individual withdrawals from private equity, the overarching trend shows increasing investment interest, making the idea of mass withdrawal inconsistent with the current environment.