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Accounting & Taxes

Should I call more capital than I need?

Asked by:
Community Member
1
0
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Nov 16, 2023
1 answer
Adeo Ressi
Accepted Answer
Nov 16, 2023
No. Managers should only call the amount of capital that they need for current investments, fund expenses, and management fees. Excess capital sitting in a bank account without being deployed reduces the IRR of the fund. As a rule, managers should keep fund bank account balances low and call capital as needed.

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