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Fund Operations

What activities are and are not permitted during “Limited Operations Mode?”

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Community Member
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Nov 25, 2023
The Cornerstone Agreement outlines what triggers a Limited Operations Mode, but I cannot see specifics about what specific activities are permitted or not permitted during this period. Example: can GPs make investments? Can partners continue advisory services for portfolio companies? Can Analysts conduct market research or other activities? Can due diligence activities continue?
1 answer
Accepted Answer
Nov 26, 2023
This is by design. If one were to specify every action that could or could not take place in limited operations mode, you would end up with at 200+ page document filled with legalese. Long legal agreements filled with legalese create a lot of leverage for lawyers and Limited Partners. Sections 2.2.2 and 4.9.2 of the Cornerstone LPA cover that that the Manager will not be able to draw management fees or call capital during Limited Operations Mode. 
Makes sense, thanks.
Community Member
Nov 27, 2023 4:13pm
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