The $85 billion venture firm downsized the commitments it expects its investors to make to vehicles targeting cryptocurrency and its own peers, the Wall Street Journal reported.
With those investors, known as limited partners, now less pressed to flee private markets, it’s a smart time for Sequoia to help them shift into more promising opportunities.
As last year's downturn tanked their public investments, LPs found themselves relatively overinvested in still-highly-valued private markets, forcing them to pull back from the likes of venture funds.
As public markets recover – the S&P 500 Index (.SPX) is up almost 20% this year – this “denominator effect” is fading, a Capstone Partners survey suggests.
And with LPs once again keen on private markets, they may be more likely to stick around, despite Sequoia’s self-admitted mistakes on investments like now-bankrupt FTX.
Persons:
Sequoia’s, Anita Ramaswamy, ’, Jeffrey Goldfarb, Sharon Lam
Organizations:
YORK, Reuters, Wall Street Journal, Capstone Partners, Twitter, Walmart, BT boss’s, Thomson
Locations:
Sequoia