The impression I got from the article is no new money is being pledged; PE firms are just calling in previous investments.
Those investors (like homeowners and the occasional VC limited partner) could default on their pledges, but that might prove even more costly -- in reputation, in loss of their other monies already stuck at the PE firm, etc.
Those investors (like homeowners and the occasional VC limited partner) could default on their pledges, but that might prove even more costly -- in reputation, in loss of their other monies already stuck at the PE firm, etc.