Capital Call/Drawdown

A capital call is the process a GP, deal lead, or fund administrator uses to request funds from investors or LPs. Capital calls typically occur when a fund or SPV is going to make an investment or pay certain expenses. In most cases, LPs will fund a portion of their overall commitment when they sign their investment docs, known as the “initial drawdown.”

A fund’s capital schedule (or the cadence at which they request additional capital from LPs) is typically set by the Limited Partner Agreement (LPA) that all LPs sign when they initially commit to the fund.