Final Close
Final close is the last closing date after which new LPs cannot join the fund under normal terms.
Definition
Final close ends the fundraising window. After final close, the LP base and fund size are fixed (subject to any rare exceptions in documents). The fund fully transitions from capital formation to deployment, monitoring, and exits. Allocator Context Some allocators prefer committing closer to final close because fund size and LP composition are clearer. Others prefer earlier participation for access and relationship reasons. Final close also matters for operational planning: MFN elections, side-letter completion, and subscription administration converge near the end. Decision Authority Late-stage commitments can become challenging for institutions due to compressed legal and compliance timelines. Even if an IC approves, internal operations (KYC, counsel review, signature authority) can prevent closing in time. Why It Matters for Fundraising Discipline matters. A manager who holds a credible final close deadline is easier to prioritize internally. Frequent deadline extensions create pipeline fatigue and reduce trust in fund management discipline. Key Takeaways Stabilizes fund size and LP base Late commitments are operationally harder for institutions Deadline discipline builds credibility Repeated extensions can hurt conversion