Capital Calls: How and When LP Capital is Drawn
How committed capital is called over a fund's life.
LPs usually commit capital up front but contribute it ver tiem through capital calls. The fund calls capital as it needs it — to make investments or pay expenses — rather than holding all the monet at once.
How it works:
The GP issues a notice specifying the amount and due date. LPs wire their pro-rata share by the deadline. Repeated calls draw down commitments until the fund is fully invested. Subscription documents define what happens if an LP fails to fund a call. PaperOS supports sending out capital calls — see this workflow for more information.
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