Fund operations

Capital Call

A capital call, also called a drawdown, is a formal request from a fund manager for limited partners to pay in part of the capital they committed. Funds call capital as needed for investments, fees and expenses, rather than collecting the full commitment upfront, and each LP pays pro rata to its commitment.

Fund Administrator

A fund administrator is the firm, or in-house team, that runs a fund's back office: calculating NAV, keeping the books, processing capital calls and distributions, maintaining investor records and producing reports. It is distinct from the fund manager, which makes the investment decisions.

Side Letter

A side letter is a separate agreement between a fund and an individual limited partner that grants that investor rights or terms beyond the limited partnership agreement, such as fee discounts, co-investment rights, extra reporting or excuse rights. Most LPs of meaningful size also negotiate a most-favoured-nation (MFN) clause.