GP Commitment Percentage - does it has to be paid at once or proportionally to capital calls?
GP Commitment Percentage - if it is 1% of the capital commeted, does it has to be paid at once or proportionally to capital calls?
Usually, a GP commitment is funded **pro rata alongside capital calls**, not all at once.
- If the GP commit is **1% of total committed capital**, the GP typically contributes **1% of each capital call amount** as the fund calls capital from all investors.
- Example:
- Fund size: **$10M**
- GP commit: **1% = $100K**
- If the fund calls **20%** of commitments, the GP would generally fund **$20K** at that time.
- The GP commit is generally treated like an LP interest for contribution timing and pro rata returns.
The exact rule depends on the **LPA/subscription documents**.
Reference:
- https://decilehub.com/base/1-general_questions/163685-how-are-distributions-made-to-lps-and-the-gp
- If the GP commit is **1% of total committed capital**, the GP typically contributes **1% of each capital call amount** as the fund calls capital from all investors.
- Example:
- Fund size: **$10M**
- GP commit: **1% = $100K**
- If the fund calls **20%** of commitments, the GP would generally fund **$20K** at that time.
- The GP commit is generally treated like an LP interest for contribution timing and pro rata returns.
The exact rule depends on the **LPA/subscription documents**.
Reference:
- https://decilehub.com/base/1-general_questions/163685-how-are-distributions-made-to-lps-and-the-gp