Hedgeducation

Liquidity, the J‑Curve, Capital Calls & Distributions

How private fund cash flows work—commitments, calls, distributions—and practical pacing for LP programs.

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Commitments vs. Cash

Private funds raise commitments and draw them over years via capital calls for deals, fees, and expenses. Cash flows are back‑ended, creating the J‑curve before distributions arrive.

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Pacing Programs

LPs model commitments across vintages to target steady exposure while managing liquidity. Tools such as secondaries and NAV facilities can relieve short‑term pressure in slow exit environments.

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Operational Readiness
  • Timely call funding and FX coverage
  • Document controls and wire authentication
  • Data feeds for cash‑flow forecasting