Some VCs, PEs in a spot as investors dodge capital calls amid pandemic

Singapore

AS businesses and investment portfolios take a hammering from the economic impact of the novel coronavirus, venture capital and private equity firms might have to cope with a surge in investors failing to participate in capital calls.

"Certain types of investors in particular, such as high net worth individuals and family office investors that have businesses severely impacted by Covid-19 will have less cash-on-hand available to invest," said Jason Nelms, a partner who specialises in fund formation at law firm Morrison & Foerster.