Isn’t there also a component that PE is incentivized to work for existing investors more than new investors. If they mark down an asset in a bear market and a new investor puts money in they will potentially dilute future profits for existing investors by possibly letting them in at a lower price. If the market recovers, the new investor sees all those gains. If the asset isn’t marked down, those gains are shared with existing investors (b/c the new investor had to pay above market).