A capital call notice is the GP’s official request that each LP transfer a specified amount of committed capital by a stated deadline.

How it works

Notices follow the limited partnership agreement format and typically include:

• Call amount per LP (pro rata unless side letter adjusts)
• Total fund-level purpose — new investment name, follow-on, fees, expenses, or credit line repayment
• Wire instructions and due date (commonly within 10–15 business days)
• Updated unfunded commitment balance after the call

LP fund administration teams verify the math against their commitment records, obtain internal approvals, and send wires. GPs track receipts; shortfalls may delay portfolio company funding or trigger LP default procedures.

Some notices batch multiple uses; others isolate a single deal for transparency. Quarterly reporting reconciles cumulative called capital to notices sent.

LPs should verify notice amounts against side letters — co-investment rights, fee offsets, or MFN provisions can adjust individual call calculations away from simple pro rata splits.

Why it matters

• LPs: Treat notices as urgent treasury events. Late payment can mean interest penalties or loss of co-investment rights.
• Founders: You rarely see the notice itself, but its timing affects when your investor’s tranche actually lands in the company account after a signed term sheet.

Common mistake

LPs forwarding notices to the wrong banking team or assuming email alone is sufficient without matching the signed commitment entity — wires from the wrong account get rejected and delay closes.

Related ideas

See also capital call, called capital, LP default, and capital call facility.