Close X

Capital Call

Capital Call

  • Term

    Main definition

  • Capital Call

    The announcement by the manager of a venture capital, private equity or other fund that the limited partners would need to contribute some or all of the capital that such limited partners had committed to contribute.

    When the fund manager requires the limited partners to contribute capital to the fund, his authority arises pursuant to a pre-existing funding commitment by the limited partner.  Typically, the limited partners agree to a maximum investment amount, and the general partner makes a series of requests/demands for capital over time to the limited partners as opportunities arise to invest in portfolio companies.

Contact us Today

The Nick Yocca Law Firm is committed to answering your questions regarding business law, corporate compliance, and other important legal matters in Orange County.

We'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment!