Paid-in capital—often called contributed capital or drawn capital—is the sum of LP contributions a fund has called and received to date.

How it works

When LPs sign a fund commitment, they do not wire the full amount on day one. The GP issues capital calls as investments close, fees come due, or expenses accrue. Each funded call increases paid-in capital. Fund reports show commitments, paid-in, distributions, and remaining uncalled capital (sometimes called dry powder in macro discussions).

Paid-in capital feeds net asset value calculations and denominators for metrics like DPI (distributions to paid-in) and RVPI (residual value to paid-in). It differs from invested capital when calls cover management fees or fund expenses not deployed into portfolio companies.

Quarterly LP reports show paid-in capital alongside unfunded commitments so allocators can forecast capital calls. Sudden jumps in paid-in without new portfolio announcements may reflect fee calls or credit line repayment.

Why it matters

• LPs: Rising paid-in with slow distributions affects liquidity planning. Compare paid-in pace to the fund’s stated deployment period.
• GPs: Paid-in tracks how much of the fund is active versus still callable. Fundraising narratives for Fund II often reference deployment of Fund I paid-in capital.

Compare paid-in pace to peer funds of the same vintage when LPs ask deployment questions.

Common mistake

Equating paid-in capital with money invested in startups. A portion may sit in cash, pay fees, or cover credit lines—not every dollar is in a portfolio company.

Related ideas

See committed capital, capital calls, DPI, RVPI, and uncalled commitments.