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210. Crisis Coverage w/ Chris Douvos - LP Lessons from '01 and '08, The Denominator Effect, Capital Calls & Fundraising in a Down Market
Chris Douvos of Ahoy Capital joins Nick on a special Crisis Coverage installment to discuss the LP Lessons from '01 and '08, The Denominator Effect, Capital Calls & Fundraising in a Down Market. In this episode, we cover:
What is the denominator problem/effect?
Why does it matter?
How do LPs react when they face the denominator problem?
How quickly do LPs tend to rebalance their investment portfolio?
What's the implication to VCs?
How should VCs react when their investors face the denominator problem?
LPs lose access to future funds if sell position as secondary?
When VCs make capital calls…
The skinny
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