I would have thought that the standard reference to the cocompleteness of V-Cat was Harvey Wolff, V-cat and V-graph, J. Pure and Applied Alg, 4(1974) 123-135. He shows that if V is cocomplete, then so is V-cat, by showing that V-cat is monadic over V-graph, that V-graph is cocomplete and then quoting a result of Linton in F. E. J. Linton, Coequalizers in categories of algebras, in Lecture Notes in Math. 80, Springer-Verlag 1969, 75-90. His main application is the existence of localizations in the V case. Wolff assumes that V is a symmetric monoidal closed category. The existence of the free functor from V-graph to V-cat requires that tensor commute with coproducts, and the existence of coequalizers in V-cat seems to require that tensor commute with coequalizers, so closedness apparently is essential, at least for this form of the argument. He doesn't say anything about the existence of limits in V-cat. John W. Gray