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Capital Call
A demand by a private equity fund or other investment vehicle for its investors to provide additional capital, sometimes required to fund M&A transactions.
Implications
A request made by an investment fund to its investors for additional capital contributions, often used to finance new investments or meet operational needs.
Example
Example: A private equity fund issues a capital call to its investors to raise additional funds for the acquisition of a new portfolio company.
Related Terms
Different from regular investment contributions, which are planned, a capital call is often made as needed based on investment opportunities or operational requirements.
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