It does happen with small, solo-style GP funds ($20m or less) and big funds. It’s not that uncommon here as the synergies make sense and the LPs are likely high-net worth individuals, etc.
As the fund gets larger, it’s hard, and the LPAs say investing in your own fund have to be your sole or primary activity. Also, as you even get to be a $50m fund, the conflicts would start, at least in edge cases, with the larger VC firm.
