Drawdown

When investing into a fund, investors commit to a certain amount of capital. The amount of capital that an LP must contribute upfront when the fund kicks off is known as the initial "drawdown."

Depending on the fund, not all of this capital may be required upfront. In these cases, the investor contributes the initial drawdown, and the remainder of capital is called at a later date or dates. These subsequent requests for capital are known as "capital calls."

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