Capital Call
Capital calls draw committed capital on a schedule determined by deal activity and operating needs. LPs fund calls according to partnership agreements.
Definition
Capital calls draw committed capital on a schedule determined by deal activity and operating needs. LPs fund calls according to partnership agreements. Allocator Context Allocators forecast cash flows to avoid liquidity stress and to coordinate across multiple funds and strategies. Decision Authority While capital calls are contractual obligations, commitment decisions that create future calls typically require governance approvals upfront. Why It Matters for Fundraising Managers that communicate pacing expectations, typical call frequency, and early deployment dynamics reduce friction in allocator approvals. Key Takeaways Mechanism that converts commitment into funded capital Cash flow planning is central for LPs Upfront commitment approvals are the key hurdle Predictability matters