# Capital call

A fund asking investors to wire part of what they pledged.

A fund with [committed capital](https://searchspheresource.com/glossary/committed-capital) signs its backers up front and draws the money in stages, while a traditional [search fund](https://searchspheresource.com/glossary/search-fund)'s backers fund the search and hold a right to invest in the deal. A [searcher](https://searchspheresource.com/glossary/searcher) who cannot count on a call being met while a deal is under [LOI](https://searchspheresource.com/glossary/loi) has a financing risk hiding inside a signed commitment, which is why the quality of the backers weighs as much as the amount.

In numbers: Investors who committed $2M are not asked for it at once. A $400,000 draw funds diligence and closing when the deal is real, and the other $1.6M stays with them until the next one.

Source: https://searchspheresource.com/glossary/capital-call
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