LPs plot their next move

Investors from endowments to pensions and other institutional LPs are trying to square their next steps – on VC allocations, capital calls and more – with a changing economic reality.

LPs are under duress and pondering their next moves as an economic downturn and a pandemic continue to impact their operations.

Endowments are beset with budgetary problems as covid-19 has led to the cancellation of sporting events and closed student housing and classrooms on campuses. We will likely continue to see remote schooling in the fall as educational institutions weigh their financial moves amid the coronavirus and a recession.

Meanwhile, other institutional LPs are not looking forward to getting those capital calls. Their portfolios are possibly out of whack as they balance their private asset class investments alongside their public portfolios. Venture is still an important aspect of their allocations, but it will be interesting to see how all the LPs react in the months and years ahead.

We wanted to examine how covid-19 and the downturn are changing the game for LPs. Although it is not yet clear how the rest of the year or 2021 will play out, it is clear that the resulting fallout will be materially different from anything the venture community has ever experienced before.

As such, we offer a snapshot of how we got here, what key industry figures are thinking at this point in time and what their outlook is. Their answers, featured in the stories linked below, make for a fascinating read.

So go ahead and click a card…

 

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