Fundraising Period
The fundraising period is the window during which a fund accepts LP commitments before reaching final close.
Allocator relevance: Sets diligence and approval deadlines and influences negotiating leverage, access, and true-up economics.
Expanded Definition
During the fundraising period, a manager runs closes (first close through final close), collects subscriptions, and may begin investing after first close. For allocators, timing matters: late commitments can mean entering a partially invested portfolio and paying true-ups; early commitments can provide better access but with less visibility on the final investor base.
Fundraising period length varies by strategy, market cycle, and manager brand strength.
How It Works in Practice
Managers communicate close dates and expected final close targets. LPs align diligence, IC schedules, and legal review to those deadlines. Fundraising momentum and oversubscription can compress timelines.
Decision Authority and Governance
IC cadence and legal review processes must match fundraising timelines; otherwise, allocators miss access or accept rushed decisions. Governance discipline protects against “deadline-driven” compromises.
Common Misconceptions
- Fundraising period equals investment period.
- Timelines are always flexible.
- Being late is always safer.
Key Takeaways
- It’s a schedule constraint that shapes outcomes and access.
- Align diligence early to avoid rushed decisions.
- Close timing affects exposure and economics.