I have an angel investment that I have had for several years that is performing well. I would like to promote this as a warehoused deal to prospective LPs. What are the best practices to move this into the fund and can its book value be used towards a GP commit?
Best practices for moving a personal angel investment to a warehoused deal include:
1. **Transfer at Cost**: Transfer the investment to the fund at the original cost to avoid personal tax consequences.
2. **Secure Approval**: Obtain consent from the company to change the ownership.
3. **Consistent Rules**: Set clear and consistent rules for transferring warehoused deals.
4. **Disclosure**: Fully disclose the warehoused investment to LPs before closing.
Yes, its book value can be used towards a GP commit.