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Paid-In Capital

Private Equity glossary · Private Equity Fundamentals

Definition

Capital that LPs have actually funded (not just committed).

Paid-In Capital in plain English

Paid-In Capital is the money investors have ACTUALLY handed over so far — not the money they've merely promised. In private equity, investors pledge a big amount up front (a 'commitment'), but the fund only asks for cash in installments as it finds deals, so at any moment far less has really been wired in. Think of pledging $1,000 to a group trip but only having chipped in $300 so far — the $300 is what's paid in. Tracking this matters because you can only judge how well a fund is doing against the cash it has genuinely put to work, not the cash still sitting in investors' pockets.

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