Final Close
Final close is the last closing of a fund’s fundraising, after which the fund typically stops accepting new LP commitments.
Allocator relevance: Defines allocation deadlines, economics timing, and whether an allocator can still access a fund on desired terms.
Expanded Definition
Funds often have multiple closes. Early investors may benefit from fee breaks, capacity priority, or economics structures; later investors may be subject to true-up payments to align economics across closes. Final close signals that fundraising is complete and that deployment focus becomes primary.
Allocators treat final close as a timeline milestone: it affects pacing, the opportunity to negotiate, and the risk of “late entry” into a partially invested portfolio.
How It Works in Practice
LPs commit at one of several closes, then pay true-ups so earlier investors are not disadvantaged. After final close, remaining capacity is fixed and access usually ends unless special exceptions exist.
Decision Authority and Governance
IC processes and legal review must align to the close calendar. Missing a final close can force allocators to wait for the next vintage, which can matter materially for pacing and exposure planning.
Common Misconceptions
- Final close means the fund is fully invested.
- All LPs have identical economics regardless of close timing.
- Closing dates are flexible and easily extended.
Key Takeaways
- Final close is a deadline for access and often for negotiation leverage.
- True-ups affect cash planning.
- Timing influences exposure and vintage planning.