It is likely that the fundraising process will be extended. The evaluation of the LPs will take longer or may be reconsidered.
It may be advisable to make a priority list of your potential LPs and to reach out to LPs that may be reconsidering their decisions. All LPs where the investment decision has passed the Investment Committee should now be in top of your mind and binding subscription documents should be sought.
Certain LP groups are likely to be affected more than others. Corporations may have to focus on their core operations and ensure liquidity, avoiding long-lasting obligations. LPs which have to fundraise themselves, like funds of funds or feeder funds, may face a challenging environment, in particular if they are raising from private LPs. Asset managers with strong internal diversification requirements, like endowments, insurance companies or pension funds may have to rebalance their PE/VC exposure in light of tumbling stock market valuations.
In addition, the establishment costs and the pre-financing will probably be higher than expected. Typically, such costs are only reimbursed after the first closing.
If the first closing has already occurred, an extension of the subscription period could be considered.