Recommended approach:
- Avoid “parallel funds” for new/emerging managers unless truly necessary; Decile explicitly notes they add major complexity and cost: https://decilehub.com/base/1-general_questions/2033-does-vc-lab-have-a-nominee-basis-template-for-parallel-funds
- If a parallel vehicle is required, structure it to invest side-by-side with the main fund on the same economics and deal-by-deal allocation policy, with expenses allocated pro rata by participation.
- Keep one master allocation/expense model and one cap table ownership schedule across vehicles so ownership percentages stay synchronized.
- Document this clearly in the LPA/private placement materials and conflict policy, including how allocations between Fund I, Fund II, SPVs, and parallel vehicles are handled and approved. Relevant conflict guidance: https://decilehub.com/base/1-general_questions/163682-how-are-conflicts-of-interest-handled
- In LP reporting, show the main fund and each side vehicle separately, plus a consolidated “look-through” view.
- Avoid “parallel funds” for new/emerging managers unless truly necessary; Decile explicitly notes they add major complexity and cost: https://decilehub.com/base/1-general_questions/2033-does-vc-lab-have-a-nominee-basis-template-for-parallel-funds
- If a parallel vehicle is required, structure it to invest side-by-side with the main fund on the same economics and deal-by-deal allocation policy, with expenses allocated pro rata by participation.
- Keep one master allocation/expense model and one cap table ownership schedule across vehicles so ownership percentages stay synchronized.
- Document this clearly in the LPA/private placement materials and conflict policy, including how allocations between Fund I, Fund II, SPVs, and parallel vehicles are handled and approved. Relevant conflict guidance: https://decilehub.com/base/1-general_questions/163682-how-are-conflicts-of-interest-handled
- In LP reporting, show the main fund and each side vehicle separately, plus a consolidated “look-through” view.