How does warehousing work?
Best practice for warehousing is: i) you invest in a company on behalf of your fund or you invest in a company through an entity that you wholly own on behalf of your fund; ii) when the fund holds its first close and receives LP contributions, you or your hold co transfers the warehoused investment to the fund at cost; iii) the fund either purchases the interest or you treat it as a contribution to the fund. In terms of timing of the transfer, best practice is to do it as soon as possible after the first close.
