Called capital is LP money that the GP has requested through capital calls and that LPs have funded — as opposed to remaining uncalled commitment.

How it works

Limited partners sign subscription documents pledging a commitment (for example, $25 million). The GP does not receive the full amount on day one. Instead, as deals close, fees accrue, and expenses hit, the GP issues capital call notices. Each funded call increases called capital; the remainder is uncalled capital (sometimes called dry powder from the LP’s perspective inside that fund).

Fund reports show called capital alongside:

• Paid-in capital (may include recallable distributions in some definitions)
• Deployed capital into portfolio companies
• Reserves held for follow-ons

LP treasury teams model expected call schedules using the fund’s pacing, vintage, and strategy. Surprise acceleration — many large calls in one quarter — can strain allocation plans.

Some LPAs allow recycling of early distributions back into new investments without counting against uncalled commitment; called capital accounting should clarify whether recycled amounts affect your unfunded balance reporting.

Why it matters

• LPs: Liquidity planning starts with commitment, but cash flow follows calls. Aging uncalled capital is not idle cash in your account — it is a future obligation.
• GPs: Transparent call pacing builds trust. Clustering calls after slow deployment can prompt LP pushback on fees and follow-on strategy.

Common mistake

Equating called capital with capital fully invested in companies. Called capital also covers management fees, fund expenses, and cash held pending deployment.

Related ideas

See also capital call, uncalled capital, dry powder, and carried interest.