Committed Capital
Committed capital is the total amount limited partners have legally pledged to contribute to a fund, drawn down over time as investments are made.
| Commitment Structure | Process |
| Subscription agreement | Legal commitment to fund |
| Unfunded commitment | Capital not yet called |
| Capital calls | GP requests funds for investments |
| Call notice period | 10 to 30 days typical |
| Default consequences | Penalties if LP fails to fund |
| Recycling period | Early distributions may be recallable |
| Capital Deployment Timeline | Typical Fund |
| Investment period | 3 to 5 years to deploy capital |
| Average call | 20% to 30% of commitment per year |
| Peak deployment | Years 2 to 4 |
| Reserve for follow-ons | 10% to 20% held back |
| Full deployment | 80% to 95% of committed capital invested |
Related Terms
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