Capital commitment

A Capital Commitment, Committed Capital or simply Commitment, is the agreed capital a General Partner can request (or draw down) from a Limited Partner.

When an investor buys into a Private equity fund, the agreement specifies the total amount the investor commit to the fund. This amount is not requested initially from the Investor, but can be drawn down on request by the General Partner. When the General Partner decides to buy a company, it will call, or drawn down some of the commitment.