Already an Angel? You can become a VC, and we'll invest in your fund. Learn how Sept 15.
Save My Free Seat
1

What actually happens operationally when a fund enters "Limited Operations Mode" after a two-thirds LP vote?

1 See in Base
0
Operationally, the supported points are:

- LPs holding more than **66 ⅔%** of commitments can trigger it by **written notice** describing a **Material Breach**
- the fund enters a **restricted period**
- the **GP and LPs must negotiate in good faith** to resolve the dispute
- the period lasts **90 days**
- it can be extended by additional **90-day periods** with further notice from the requisite majority
- during the period, available Decile Base guidance says LPs’ **obligation to meet capital calls is removed**

I can’t confidently confirm a fuller list of allowed vs. prohibited GP actions from the provided material. For exact operational consequences, review the LPA and counsel.

References:
- https://decilehub.com/base/1-general_questions/19720-what-is-the-process-for-triggering-limited-operations-mode
-
https://decilehub.com/base/1-general_questions/163614-how-does-limited-operations-mode-affect-in-flight-investments-and-already-issued-capital-call-notices

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now