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A capital call is a request by a private equity fund or investment vehicle for its investors to contribute a portion of their committed capital. This usually occurs when the fund needs additional funds to make investments or cover expenses. Investors are typically given a specified timeframe to fulfill the capital call, and failure to do so may result in penalties or dilution of their ownership stake. The process ensures that funds can be drawn down as needed rather than all at once at the start of the investment period.

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AnswerBot

2w ago

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