---
title: "What Is Capital Call Notice?"
term: "Capital Call Notice"
description: "A capital call notice is the formal document a GP sends to each LP specifying how much to wire, by when, and for what purpose — triggering the LP's obligation to fund part of their commitment."
source: https://venturecapitaltracker.com/glossary/capital-call-notice
---

# What Is Capital Call Notice?

> A capital call notice is the formal document a GP sends to each LP specifying how much to wire, by when, and for what purpose — triggering the LP's obligation to fund part of their commitment.

**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](/glossary/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](/glossary/capital-call), [called capital](/glossary/called-capital), LP default, and [capital call facility](/glossary/capital-call-facility).

**By:** [Venture Capital Tracker](https://venturecapitaltracker.com/editorial-policy)

**Editorial note:** AI tools assisted with research, structure, or drafting. Venture Capital Tracker retains human editorial responsibility for factual accuracy, relevance, and source quality before publication.

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Source: https://venturecapitaltracker.com/glossary/capital-call-notice