Commitment
The amount of capital an LP contractually agrees to invest in a fund over its life, drawn down through capital calls.
Commitment explained
A commitment is an investor's binding undertaking to provide capital up to a stated amount when called. It is the unit almost everything else in fund operations is measured against: called and uncalled amounts, ownership percentages, allocations and fee calculations all derive from the commitment record.
How it works in practice
- The commitment register is the single source for allocations.
- Transfers, defaults and subsequent closes update the register with history.
- Equalisation for later closes is calculated from the register.
Common mistake
Maintaining commitments in more than one place, which guarantees the allocations will eventually disagree.
Why it matters in private capital
Commitment sits inside a chain of decisions that runs from sourcing through diligence, investment committee, portfolio monitoring and LP reporting. When each stage lives in a different tool, the evidence behind the decision is rebuilt at every handover. Keeping the concept on one record is what makes the fund able to explain, not just report, what it did.
How Reuben AI handles Commitment
Reuben AI is one platform for the full private capital workflow. Deal intake and screening at /deal-flow-management, diligence and IC memos at /ic-memo-software, portfolio monitoring and LP reporting at /lp-reporting-software all read from the same record, so Commitment does not need to be re-entered per tool. Pricing is at /pricing.
Frequently asked questions
What is Commitment?
The amount of capital an LP contractually agrees to invest in a fund over its life, drawn down through capital calls.
How does Commitment work in practice?
A commitment is an investor's binding undertaking to provide capital up to a stated amount when called. It is the unit almost everything else in fund operations is measured against: called and uncalled amounts, ownership percentages, allocations and fee calculations all derive from the commitment record.
What is the most common mistake with Commitment?
Maintaining commitments in more than one place, which guarantees the allocations will eventually disagree.
How does Reuben AI handle Commitment?
Reuben AI keeps Commitment on the same record as sourcing, diligence, investment committee, portfolio monitoring and LP reporting, so the underlying evidence does not have to be rebuilt for each workflow.
Related terms
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