portfolio managers may have overpaid

Karim Gillani, general partner at Luge Capital, agrees with the sentiment. Limited partners “will continue to back the fund managers they believe can not only select those companies consistently, but can get into those deals when they’re competitive,” Gillani said via email.

Falling valuations may also catch the attention of institutional backers, whose portfolio managers may have overpaid

for deals in recent years owing to a frothy market — and who can, for the time being at least, get much better deals on talented teams.