anyone got an example of a capital call /draw down letter to investors in a VC fund?

September 21, 2009 9:45 AM

Anyone got an example of a capital call /draw down letter to investors in a VC/ PE fund?
posted by priorpark17 to work & money (4 comments total)

Are you just looking for a template for your own use or do you have a question about what these usually contain?
posted by dbolll at 10:38 AM on September 21

template, or what they contain. trying to get a feel for the tone.
posted by priorpark17 at 10:46 AM on September 21

If you work at a fund, your attorneys will write this for you.

See below for an example I dug up from a couple years ago. I am not a lawyer. This is not legal advice. This is simply an example of a draw down letter provided for illustrative purposes only.

______________

[Date]

To: [Limited Partner]

Dear Sir or Madam:

Pursuant to the Limited Partnership Agreement of [Example Fund, L.P.], this letter is to notify you that on Monday, [Draw Date], there will be a drawdown of X% of the total committed amount from each Limited Partner. The commitment amount for the above referenced Limited Partner is $Y and its share of the drawdown is $Z. The Limited Partner’s remaining capital commitment after this funding will be $A.

Funds representing the above referenced Limited Partner’s share of the drawdown should be sent to us by Federal funds wire transfer on [Draw Date], no later than [time and timezone].

The wire transfer instructions for this drawdown are as follows:

[Bank Name & Address]
ABA #:
For Account:
Account Name: [Example Fund, LP]
Attention:
Reference: (insert name of investor here)

Please note that as of April 1, 2004, the U.S. Securities and Exchange Commission instituted a new rule regarding the custody of client assets by investment advisers. As a result, [Example Fund] is no longer able to accept a check for payment of your drawdown.

If you have any questions, please feel free to give me a call.

Yours very truly,

[Example Fund administrator]
posted by mullacc at 11:31 AM on September 21

thanks mully
posted by priorpark17 at 11:54 AM on September 21