Operations
Unfunded Commitment
The portion of an LP's total commitment that has not yet been called by the GP.
Unfunded commitments are off-balance-sheet liabilities for LPs. They drive liquidity planning, pacing models, and the denominator-effect risk that hits institutional portfolios in down markets.
Leading practice is to model expected calls and distributions across the entire portfolio at quarterly granularity, then stress-test against scenarios where exits slow and calls accelerate.