Operations
Capital Call
A formal request from a GP to LPs to fund a portion of their committed capital.
Capital calls are the operational heartbeat of a private fund relationship. They typically arrive with 10-15 business days' notice and itemize the use of proceeds.
LPs need a reliable workflow to receive, validate, fund, and reconcile each call. Late funding triggers default penalties that can include forfeiture of the LP's interest in the fund.
Subscription lines have reduced the frequency and unpredictability of calls, but they have not eliminated the requirement for tight cash management.