What Does Committed Capital Mean in Terms of Private Equity?
Posted on 08/25/2021
Committed capital is the total monetary (dollar) amount of capital pledged to a fund. Other synonyms include capital commitment or commitment. Essentially, it is the agreed capital a General Partner can request from a Limited Partner.
In addition, contributed capital is the total capital contributed to a fund for investments, fees and expenses, including late closing interest paid, less returns of excess capital called.
Invested vs. Distributed Capital
Distributed capital is capital sent to the limited partners, including late closing interest earned.
Invested capital is capital invested by a fund in portfolio holdings.