The LPA usually limits capital calls through **process, purpose, and fund-level caps**, not a fixed calendar.
- **Timing:** it typically requires a stated **notice period** before funding, often around **10 to 15 business days**
- **Amount:** calls are generally limited to what is needed for **investments, management fees, and fund expenses**
- **Overall cap:** the GP generally cannot call more than an LP’s **unfunded commitment**
- **Uniformity:** LPs should generally remain on the **same capital call schedule**, since different schedules can create fiduciary issues
- **Practical effect:** most LPAs avoid a rigid pre-set drawdown schedule, preserving GP flexibility during the investment period
References:
- https://decilegroup.com/articles/lpa-template-for-vc-funds
- https://decilegroup.com/articles/venture-capital-treasury-management
- https://decilehub.com/base/1-general_questions/21510-how-does-the-system-handle-capital-call-calculations-when-previous-commitments-have-already-been-fully-called-does-it-automatically-prevent-additional-calls-or-is-there-a-way-to-override-this-for-specific-investors
- **Timing:** it typically requires a stated **notice period** before funding, often around **10 to 15 business days**
- **Amount:** calls are generally limited to what is needed for **investments, management fees, and fund expenses**
- **Overall cap:** the GP generally cannot call more than an LP’s **unfunded commitment**
- **Uniformity:** LPs should generally remain on the **same capital call schedule**, since different schedules can create fiduciary issues
- **Practical effect:** most LPAs avoid a rigid pre-set drawdown schedule, preserving GP flexibility during the investment period
References:
- https://decilegroup.com/articles/lpa-template-for-vc-funds
- https://decilegroup.com/articles/venture-capital-treasury-management
- https://decilehub.com/base/1-general_questions/21510-how-does-the-system-handle-capital-call-calculations-when-previous-commitments-have-already-been-fully-called-does-it-automatically-prevent-additional-calls-or-is-there-a-way-to-override-this-for-specific-investors