Commitment Pacing

Definition

Commitment pacing is the discipline of committing capital across years and strategies so that actual invested exposure remains stable over time. Because private funds call and return capital unevenly, allocators use pacing to avoid “lumpy” exposure, maintain vintage diversification, and reduce the risk of committing too much during peak markets. Allocator Context Institutional allocators often run pacing models using expected call and distribution curves. Family offices may pace more informally but still face the same reality: if too many commitments overlap, liquidity can be strained and opportunities may be missed. Decision Authority Pacing decisions are typically governed by CIO teams and overseen by committees. A manager may be approved, but commitment size may still be reduced or deferred due to pacing constraints and vintage exposure balance. Why It Matters for Fundraising Pacing is a primary reason allocators say “not this vintage” or “next fund.” Managers who understand pacing dynamics and offer realistic call/distribution expectations become easier to slot into allocator plans. Key Takeaways Stabilizes exposure across years and cycles Avoids liquidity cliffs from overlapping calls Affects commitment timing and size Explains many allocation deferrals