![]() In particular, GPs must consider how capital calls will impact their relationships with LPs. However, the GP is likely to take into account additional considerations when timing capital calls. The simple answer is that GPs call capital whenever they think the fund needs it. Once you’ve sent your full $100k, you have fulfilled your commitment to the fund. And three months after that, you receive a final capital call for the remaining 20%. Seven months later, you get another capital call for 30% of all committed capital. Your uncalled capital now stands at $50k. Because you committed $100k, you must send $20k. Since that’s 20% of the fund’s committed capital, LPs must send 20% of their initial committed capital within ten days (or whatever time frame the LPA specifies) of the capital call notice. Six months after the initial drawdown, the GP decides to call another $20M. The GP invests the initial $30M drawdown from all LPs in several early-stage companies. The LPA states that the initial drawdown is 30%-that is, you must contribute $30k to the fund now and hold onto your remaining $70k until it's called. Here’s an example of how a capital call works. These are known as "default provisions" (more on this later).
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