A capital call is the process by which a fund manager asks investors to provide a portion of the money they committed to the fund, in order to execute an investment. We offer different approaches to capital calls, depending on the needs of your practice, including:
Drawing capital as needed, when requested by the underlying fund(s)
Drawing capital up front (not earning interest while waiting to be called)
Calling one-third each year*
Using a lending facility
*If you choose to call one-third of committed capital each year, 33% of capital is called upon commitment, 33% upon the first business day of the next calendar year, and 34% on the first business day of the following capital year. Should the underlying fund call capital faster than this schedule, the Investment Manager has the option to accelerate capital calls to meet this demand.