
A capital call line is a revolving line of credit that a lender provides to a private equity group (PEG). The line of credit is collateralized with a pledge of the right to call and receive capital contributions from the fund’s investors. The main benefit of having a capital call line or advice line is to bridge capital calls for short-term working capital.
To provide a better understanding, here is a review of common terms associated with
capital call lines:
● PEGs: Closed-end investment companies that invest in businesses and/or commercial real…