How Much Capital Can Be Deployed from First Close Investors Before the Second Close in a Fund?
I’ve been speaking to a few potential LPs and a question came up that I was hoping someone could answer. How much of the “first close investors” capital can be deployed before the second close? For example if I had a $10M fund target with a first close of $2M am I able to call and deploy that full $2M before raising the remaining $8M? And even if I’m legally able to do so under the terms of a LPA would this be considered off-market? Thanks in advance.