Committed capital is the aggregate LP subscription amount to a fund—the ceiling the GP can call before the partnership agreement limits expire.

How it works

At final close, each LP signs a subscription agreeing to fund capital calls up to their commitment. The GP draws capital for investments, management fees, and fund expenses. Called capital is what LPs have wired; committed minus called equals uncalled capital (often called dry powder). Fee bases frequently use committed capital during the investment period, then step down to invested or net asset value afterward—terms vary by LPA. LPs cannot renege on commitments without default consequences. Fund sizing announcements reflect total commitments, not day-one cash. Recycling provisions may redeploy proceeds up to a cap, effectively reusing committed headroom within limits.

Why it matters

• LPs: Portfolio cash planning must cover uncalled commitments across overlapping fund vintages. Over-committing to illiquid funds strains liquidity buffers.
• GPs: Deployable firepower for new deals depends on uncalled commitments minus reserves and concentration limits. Fundraising success is measured in commitments raised.
• Founders: When a VC cites fund size, ask how much is committed versus already called and reserved for follow-ons.

Common mistake

Equating committed capital with cash sitting in the fund today. Most commitments stay uncalled until deals and fees trigger capital calls.

Related ideas

Dry powder, capital call, called capital, management fee, and final close are the core companion concepts.