Sample Capital Call Notice For Private Equity

State:
Multi-State
Control #:
US-02535BG
Format:
Word; 
Rich Text
Instant download

Description

The Sample Capital Call Notice for Private Equity serves as a formal communication to members of an LLC regarding their unpaid contributions. This document outlines key resolutions adopted by members, authorizing the managing member to purchase a member's interest and to issue a capital call request to raise necessary funds. Key features include the clear stipulation of unpaid amounts, deadlines for payment, and potential penalties for non-compliance, such as dilution of membership interest. The form is designed for easy completion, requiring minimal information from the managing member and the recipient member. It is suitable for attorneys, partners, owners, associates, paralegals, and legal assistants, facilitating effective communication about financial obligations. Users should ensure they include accurate details, such as names, addresses, and specific dollar amounts due. Additionally, this form may be utilized in situations where funding is critical for maintaining operational integrity and member equity balance. Proper filling and timely issuance of this notice can help mitigate financial disputes and support ongoing member collaboration.
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How to fill out Notice Of Capital Call Request To Member, Unpaid Contribution Of Member, And Possibility Of Dilution Of Membership Interest For Failure To Make Such Contribution?

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FAQ

Capital Call Example Say you commit $100k to a $100M fund. The LPA states that the initial drawdown is 30%?that is, you must contribute $30k to the fund now and hold onto your remaining $70k until it's called.

We are writing to notify you that in ance with Section 3.3 of the Agreement, the Company hereby requests a Capital Contribution in the amount of $________. Based on your Ownership Percentage of ___%, the total amount owed by you is $________. less than fifteen (15) days' notice.]

A capital call (also referred to as a 'drawdown' or a 'capital commitment') is the means by which limited partners fund their investments in a private equity fund. An LP agrees to a certain capital commitment as part of their Limited Partnership Agreement (LPA) with a private equity fund.

Private equity firms typically issue capital calls when an investment deal has been reached and is nearing close. Investors have a predetermined amount of time, which is usually between a week and 10 days, to provide the funds. Once investors provide the funds they are repaid later on with capital contributions.

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Sample Capital Call Notice For Private Equity