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Fund structure

Subscription line

Also known as Capital call facility

A credit line a fund borrows against, secured by its LPs' unfunded commitments.

It lets the manager invest immediately and call capital from LPs later, in one larger batch. That can lift the reported rate of return, so many LPs ask how much a fund uses it and for how long.

Why it matters when you raise
Expect questions on the size and duration of any facility, and be ready to show performance with and without it.
Related terms
Capital callInternal rate of returnLimited partnership agreement
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