Capital Call Notice
A capital call notice is the formal funding instruction to LPs specifying amount, due date, purpose, and wiring details.
Allocator relevance: High — operationally critical; errors or weak controls create funding failures, penalties, and relationship damage.
Expanded Definition
Capital call notices operationalize the capital call process. They typically include the draw amount, LP pro-rata share, purpose (investment/fees/expenses/reserves), due date, wiring instructions, and contact details. The notice is distinct from the concept of a capital call itself: the notice is the auditable document that enables settlement and reconciliation.
Decision Authority & Governance
Governance focuses on admin controls, dual-approval workflows, standardized templates, audit trails, and timely delivery. Allocators evaluate: accuracy, frequency, predictability, and whether call purposes align with stated cash needs and forecasts.
Common Misconceptions
- A call notice is a soft heads-up (it is a binding instruction).
- Wiring errors are minor (they can trigger defaults/penalties).
- Call purpose detail is optional (institutions expect it).
Key Takeaways
- Treat notices as high-risk operational documents.
- Validate details immediately and reconcile internally.
- Forecast consistency is a GP maturity signal.