Private Markets

Unfunded Commitment

Definition

What is Unfunded Commitment?

The portion of committed capital not yet called or contributed.

Example in practice

After paying ₦400 million, the LP has ₦600 million unfunded.

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Investment in privately held companies, often with active ownership and a multi-year exit plan.

Equity financing for young, high-growth companies with substantial uncertainty.

An individual who invests personal money in early-stage companies.

A preliminary document outlining the main commercial terms of a proposed investment.

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