*All graphs and figures are taken directly from the Pitchbook report.
When an LP commits to a fund, it typically takes five years for their capital to be called down. This presents the problem: what should they do with their cash while they are waiting for it to be invested, and how can they predict when it will be called down?
The average capital call per quarter is 5% of the total committed. While this shrinks as the fund ages, LPs must still be ready for larger call-downs. Still, half of all PE funds have called 18.9% of all commitments at some point in their lifespan, and a quarter of them have called in 24.6%. This type of big call tends to occur early in the fund’s life. The size of capital calls begins falling once 75% of capital has been deployed, while the frequency drops once 90% has been reached. Calls tend to be largest during the fund’s second and third year (see graph).