Investors with a portfolio care about huge wins in their portfolio, not modest liquidity events. It would be irrational for a company to choose to remain a life

Investors with a portfolio care about huge wins in their portfolio, not modest liquidity events. It would be irrational for a company to choose to remain a lifestyle business if the alternative is a huge liquidity event. This implies that in the scenario you are outlining, the alternatives are either modest liquidity events or complete dissolutions. A rational investor should spend his time evaluating deals for big wins, not try to recover modest amounts from the walking dead.