In the first week of October, the Wall Street Journal reported that JC Flowers & Co.’ marked down an unrealized loss of nearly $2 billion on its $6.5 billion fund. The news for limited partners was pretty grim, although some cheer could be found, as JC Flowers, less than a month earlier, held a $2.5 billion first close for its follow-up effort. It’s perhaps a sign that while the LBO world wallows, the fundraising market is not so easily shut down.

With that said, new obstacles are cropping up every day, and if a firm does not have a sufficient track record or a brand name in lieu of results, it is going to be tough sledding in the months to come. The challenge confronting limited partners is twofold. As stock investments deteriorate, the amount that LPs are able allocate to equity investments has also dropped off. Considering the volatility of the stock market, institutions also might be more inclined to leave some cushion, which would very likely come at the expense of their less liquid alternative assets.

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