Capital Call Best Practices


Capital Calls are a busy time for fund managers and investors alike. When generating a capital call, there are many things to consider. Ideally, you want to communicate with investors early and often to ensure that all funds are received in a timely manner once the call has been issued.

Update Capital provides all the needed features to facilitate a smooth process from start to finish and set you up for success. Take a look at the key points below and consider incorporating them into your workflow.


Communication

When it comes time to issue a capital call, communication is key. Notifying investors, creating follow-up actions, and issuing payment reminders are just a few examples of key communication tasks the system supports when a capital call is due.


The obvious and critical first step is notifying investors an upcoming capital call is due. Administrators will want to send an email to all investors and alert them to log into the portal to take action. There are two ways to do this:

Depending on the size and scale of the capital call, one method of communication may be more suitable than the other. This also allows you to send targeted communications later on to any investors who haven't made the call following your initial property update/newsletter mailing.


Actions

Login actions are an effective way to require investors to perform tasks such as providing up-to-date information and signing documents. During a capital call, you can use the Actions menu to create pop-up messages alerting investors a call is due to prompt them to take action.


A typical workflow might look like this:

  1. The investor receives an email notification that it's capital call time inviting them to log in to the portal.
  2. Upon login, a pop-up window appears with a message alerting the investor, for example, An active call is in place, due by...
  3. The user must click the commit button to acknowledge this message, access more details and take the necessary actions.

This also works well when if a capital call has not been met. You can create a pop-up window requiring the investor to take action. and reminding them a payment has not been met. Of course, system administrators can customize the action type and pop-up wording accordingly to best meet the needs of your investors.