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Can LPs sell shares in lieu of capital calls?

Please clarify the question - are you asking if a Limited Partner can sell shares that the Limited Partner is holding onto as an individual in order to generate cash to fulfill the Fund's capital call? 
Mar 27, 2025 2:21pm
Thanks for your response, Haw. Yes, can LPs sell shares to an individual or other LPs in order to fulfill the fund's capital call? 
Mar 27, 2025 7:26pm
Please clarify what you mean by "or other LPs". Thanks. 
Mar 27, 2025 7:35pm
"Other LPs" as in the other LPs participating in the fund - for example LP #1 sells shares to LP #2 in exchange for cash
Mar 27, 2025 8:44pm
If a limited partner is holding shares of a private company's stock, and wishes to sell them in a secondary transaction to generate cash, as long as they follow the company's legal agreements/procedures and the company consents, this is theoretically possible.  

The limited partner can then use the cash to fulfill a pending capital call to a Fund. If the person purchasing these shares of a private company's stock is also a limited partner in the same fund, I suppose that's possible, though it would be pretty rare. 
Mar 27, 2025 8:54pm
Great! Thanks for the clarity, Haw
Mar 27, 2025 8:58pm
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