Commitment Period

Private Equity Glossary

The period during which the GP may call capital for NEW platform investments — typically Years 1-5 of fund life (sometimes extended to Year 6). Also called the investment period. During the commitment period, management fees are charged on committed capital (the full pledged amount); at end of investment period, no new platform investments may be made (though follow-ons in existing portfolio companies continue), and management fees step down to a percentage of invested cost of unrealized investments.

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