LPs have reported frequent and broad communication from GPs, who are keeping fund investors updated on the status of portfolio companies, vulnerable spots, and actions GPs are taking to defend investments.
LPs may be better served to make sure they have liquidity elsewhere in their portfolio before making drastic changes to their private markets allocations.
A massive calling of the credit facilities by banks would lead to GPs calling down huge amounts of capital from LPs, who are already dealing with cratering public equity portfolios. This would be a nightmare scenario.
The fund entered into its second co-investment vehicle with asset manager Neuberger Berman.
"The most important thing is to have a plan and stick with the plan. Nobody knows how this is going to play out. Let's not shoot all our bullets at one time.”
MiddleGround, which launched in 2018, joins Leonard Green & Partners as another firm setting up assistance for portfolio company employees who are adversely affected by the coronavirus outbreak.
The fund will be for employees of Leonard Green portfolio companies adversely impacted by the outbreak of covid-19.
Prevailing wisdom is that funds in market or just coming out would have to add another three to six months on top of their fundraising schedules.
The pension's portfolio has lost billions in value as the public markets have struggled due to the coronavirus pandemic.
The fund's strategy will focus on acquiring IP products in film, television, music and video games.