Drawdown
A drawdown is a capital call from a fund to limited partners, requesting a portion of their committed capital to fund investments or expenses.
| Drawdown Process | Timeline |
| Investment identified | Fund closing on property acquisition |
| Capital call notice | Sent to all LPs with amount and date |
| Notice period | 10 to 30 days to wire funds |
| Purpose disclosed | Investment details provided to LPs |
| Wire instructions | Sent with call notice |
| Default consequences | Interest penalties, dilution, or removal |
| Typical Drawdown Schedule | Year |
| Year 1 | 20% to 30% of commitment |
| Year 2 | 30% to 40% of commitment (peak deployment) |
| Year 3 | 20% to 30% of commitment |
| Year 4 | 10% to 20% of commitment |
| Year 5+ | 0% to 10% (follow-ons, reserves) |
| Total deployed | 80% to 95% of committed capital |
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