It is very likely that diversification requirements at the level of investors that are diversified asset managers or subject to investment-related regulation will require a re-balancing of the portfolio after the valuations of public assets such as stocks have fallen dramatically. If there are significant changes in the asset allocation structure, Private Equity and Venture Capital investments may have to be liquidated because the LP is overexposed compared to liquid assets.
For various LP groups such diversification requirements are either defined in their own fund documentation or laid down by law (e.g. pension funds).
This may lead to an increased volume of transactions on the secondary market (Can an LP transfer its interest in the fund (fund secondaries)?) or a reluctance to make new subscriptions (How could the crisis affect the fundraising process?).