At the end of the day it was never the VC's money at risk, it was the LP's.
If the investments make less, the investors in the VCs get less. Unless there is a series of redemption clauses that trigger fire sales of illiquid investments, there wont be a big bang moment.
If the investments make less, the investors in the VCs get less. Unless there is a series of redemption clauses that trigger fire sales of illiquid investments, there wont be a big bang moment.