Chris Witkowsky

If bids come in at a steep discount, some LPs are ready to use that data point to question other VCs invested in the same assets about their valuations and why they are not writing them down.

One of the challenges that has emerged as potential buyers explore an acquisition of SVB Financial’s fund of funds platform is continuing access to the top names in venture capital, say sources familiar with the process.

SVB Financial Group, the holding company of Silicon Valley Bank, is exploring strategic options for its various business lines, including a sale of its $9.5 billion funds-of-funds business that includes limited partner positions in funds.

LPs are caught in a perfect storm: many are overweight in their exposure to the asset class because private equity valuations have not yet dropped commensurate to public markets.

In the secondaries market, most funds are trading at discounts, but GPs are not marking down their portfolio assets to the same extent. Yet.

Firm expects to invest about 60 to 70 percent of its capital in Series A and B rounds, 20 to 25 percent in growth stage deals and the rest in seed stage investments, a source said.

LPs are beset with a glut of requests for re-ups from their existing managers, in many cases at a much quicker pace than ever before.

It is still unclear whether a bigger push into private equity means CalPERS will get back into venture capital, after largely abandoning the asset class in the early 2000s.

StepStone plans to integrate the Greenspring Associates team into its existing venture and growth practice, including setting up a joint investment committee.

Critics of private equity have long considered this a loophole that allows already-wealthy GPs to pay less than regular workers.