I'm working on the capital call structure, and I am not sure what's the best way to do it. How are you structuring capital calls to avoid having capital in the bank loosing value? My fund is $5M and the investment period is 30 months.
Accepted Answer
May 03, 2023
You will not be able to predict your schedule until you do a first close. Before that, you can assume a 25% capital call on first close LPs. You will do the same on all future closed LPs (but not the LPs who you have already called capital on before), until the entire $5m is closed. Then, you are free to set a new schedule because all LPs have been equalized.