I’m not sure I know of any “traditional” LPs that backed out of commitments — but certainly what happened a lot after the Web 1.0 bust was a ton of High Net Worth Individuals got a lot poorer and did not make their capital calls.

The secondary market swooped in, in many cases, and bought up these interests at $0.30 or $0.50 on the dollar. And make a killing it many cases, juicing their returns 2–3x and getting to invest “later” in the lifecycle of the fund.

Taking > $1m from HNWI is a bit risky, and taking $$ from HNWI where they don’t have to make 100% of the capital call up front is a bit risky. They get more nervous when the J-Curve goes real deep.

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