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Should I call more capital than I need?

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Nov 16, 2023
1 answer
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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