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Capital Commitment

Capital Commitment

  • Term

    Main definition

  • Capital Commitment

    The total or maximum amount of capital funding committed to a limited liability company, limited partnership or any venture capital or private equity fund, by its members or limited partners.

    A fund provides for capital commitments in lieu of payment of all of the investor's capital commitment in cash immediately. The capital calls are made at times chosen by the fund manager so that funds are available when needed for making investments in portfolio companies.

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