Before revision: A capital call (also known as a draw down ) is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investorCapital Call - Glossary - Encyclopedia - Library - VC Expertscapital call - Entrepreneurs Online Dictionary For example, when an investor buys into a real-estate fund, that fund's managers may wait some time before using the investor's money to buy real estate, either because they are waiting for real estate prices to be favorable, or because they are researching new deals.
After revision: or a capital commitmentA capital call (also known as a draw down ) is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investorCapital Call - Glossary - Encyclopedia - Library - VC Expertscapital call - Entrepreneurs Online Dictionary For example, when an investor buys into a real-estate fund, that fund's managers may wait some time before using the investor's money to buy real estate, either because they are waiting for real estate prices to be favorable, or because they are researching new deals.