Louisiana Clauses Relating to Capital Calls
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FAQ
A capital call arises when management determines the need for additional funds and issues a notice to shareholders. The notice requests shareholders to contribute more money or assets. Typically, these contributions are made in proportion to the number of shares owned by each individual.
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.
