Chris Witkowsky

Opinions vary, and the real-world impacts of the rules are uncertain – lawyers are up in arms, while GPs are worried and dreaming of money flowing out of firms like a homeowner with a plumbing issue. 

The new group is among a handful of competitors vying for business from private markets GPs finding it difficult to raise funds. 

Realizations are key this year, even for funds seeking re-ups, according to a recent survey of limited partners.

The deal is related to newer early-stage venture funds backed by individual Tiger Global partners, who reportedly committed to funds from Better Tomorrow Ventures, Chapter One Ventures, Maple VC and Moxxie Ventures, among others.

LP turnover has long been a challenge for many institutions, especially on the public side, as the loss of a veteran leader can disrupt the knowledge and plans of the portfolio built under his or her tenure.

If bids come in at a steep discount, some LPs are ready to use that data point to question other VCs invested in the same assets about their valuations and why they are not writing them down.

One of the challenges that has emerged as potential buyers explore an acquisition of SVB Financial’s fund of funds platform is continuing access to the top names in venture capital, say sources familiar with the process.

SVB Financial Group, the holding company of Silicon Valley Bank, is exploring strategic options for its various business lines, including a sale of its $9.5 billion funds-of-funds business that includes limited partner positions in funds.

LPs are caught in a perfect storm: many are overweight in their exposure to the asset class because private equity valuations have not yet dropped commensurate to public markets.

In the secondaries market, most funds are trading at discounts, but GPs are not marking down their portfolio assets to the same extent. Yet.