Committed Capital

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Dictionary Says

Definition of 'Committed Capital'

A contractual agreement between an investor and a venture-capital fund that obligates the investor to contribute money to the fund. The investor may pay all of the committed capital at one time, or make contributions over a period of time. This often takes place over a number of years.

Also known as "commitments".
Investopedia Says

Investopedia explains 'Committed Capital'

When an investor commits capital to a venture capital fund, the investor typically has many years to satisfy the agreement. Often, contributions will be made over a period of three to five years after the fund is formed.

The private equity market can be viewed as riskier than the public equity market, as returns in the private market tend to have higher dispersion of returns than the public market. Therefore, investing in the right business ventures can offer substantial rewards for top tier funds.
Search results for

'Committed Capital'

  • 3 Reasons To Own Ares Capital

    http://stocks.investopedia.com/stock-analysis/2011/3-Reasons-To-Own-Ares-Capital-ARCC-ACAS-AINV-SLRC-BKCC-BAH0519.aspx
    ... Ares is one of the largest specialty finance companies in America, with
    $13 billion in committed capital to the middle-market. (If ...

  • Learn The Lingo Of Private Equity Investing

    http://www.investopedia.com/articles/stocks/09/abcs-of-private-equity.asp
    ... Committed Capital, Drawdown, Vintage Year and Paid-In Capital In the private equity
    world, money that is committed by limited partners to a private equity fund ...

  • Key Players In Mergers And Acquisitions

    http://www.investopedia.com/articles/07/ma-competition.asp
    ... return for investors, private equity firms typically earn a management fee of 2%
    of committed capital per year, as well as carried interest of 20% of profits. ...

  • Be Your Own Venture Capitalist With These Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Be-Your-Own-Venture-Capitalist-With-These-Stocks-TINY-ACOM-AMLN-TICC-BDCS1020.aspx
    ... The National Venture Capital Association (NVCA), in 2010 there were 462 active US
    venture capital firms managing around $176.7 billion in committed capital. ...

  • Be Your Own Venture Capitalist With These Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Be-Your-Own-Venture-Capitalist-With-These-Stocks-TINY-TICC-HTGC0915.aspx
    ... The National Venture Capital Association (NVCA), in 2010 there were 462 active US
    venture capital firms managing around $176.7 billion in committed capital. ...

  • Be Your Own Venture Capitalist With These Stocks

    http://stocks.investopedia.com/stock-analysis/2012/Be-Your-Own-Venture-Capitalist-With-These-Stocks-TINY-ACOM-AMLN-TICC-BDCS0227.aspx
    ... The National Venture Capital Association (NVCA), in 2010 there were 462 active US
    venture capital firms managing around $176.7 billion in committed capital. ...

  • Be Your Own Venture Capitalist With These Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Be-Your-Own-Venture-Capitalist-With-These-Stocks-TINY-ACOM-AMLN-TICC-BDCS1220.aspx
    ... The National Venture Capital Association (NVCA), in 2010 there were 462 active US
    venture capital firms managing around $176.7 billion in committed capital. ...

  • How The Big Boys Buy

    http://www.investopedia.com/articles/stocks/07/mergers.asp
    ... hungry is that their charter often requires them to acquire a company within 12
    to 24 months, otherwise investors lose a portion of their committed capital. ...

  • The Working Capital Position

    http://www.investopedia.com/articles/basics/06/workingcapital.asp
    ... You can't pay bills with working capital; you pay bills with cash ... Also, unused committed
    lines of credit - usually mentioned in a note to the financials on debt ...

  • Southwestern Energy In 2011

    http://stocks.investopedia.com/stock-analysis/2011/Southwestern-Energy-In-2011-SWN0111.aspx
    ... Shale Southwestern Energy has allocated $1.15 billion of this capital towards
    development ... Not all exploration and production companies are as committed to the ...

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