- **Warehoused investments** are deals the manager sourced or bought **before the fund’s first close**, then later sells to the fund.
- Managers do this to:
- avoid missing time-sensitive deals while fundraising
- seed the fund with on-thesis exposure early
- show actual portfolio traction to prospective LPs
- They are listed as a **Cornerstone Exception** because buying from the GP or affiliates is a **conflict transaction**, so LPs are asked to pre-consent to the specific schedule.
- **Pricing:** usually at **cost** or cost plus clearly disclosed, limited expenses; sometimes fair value if time has passed, but that needs strong support.
- **LPs look for:**
- anti-cherry-picking policy
- consistent transfer policy
- full disclosure of date, security, price, and any markup
- fairness and thesis fit
Reference:
https://decilehub.com/base/1-general_questions/21507-can-someone-explain-why-all-thesis-related-angel-investments-in-our-case-accelerator-investments-subsequent-to-the-first-one-transferred-must-also-be-transferred-into-the-fund-why-can-t-we-select-the-deals-to-transfer
