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capital calls

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capital calls

A call for additional equity investment by shareholders or partners in order to fund cash shortfalls in development or operations, or to compensate for the falling value of noncash assets and the need to increase cash so that liabilities do not exceed assets.



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The balance of the subscription price will be paid pursuant to the capital calls of PIDC on such dates and amounts as may be determined by PIDC board, San Miguel said.
In the current economic climate, many existing investors in private equity funds are looking to sell their limited partnership interests for a variety of reasons, including elimination of balance sheet liabilities associated with the obligation to meet future capital calls and raising cash for other purposes such as funding of capital calls in other funds.
Employees in the elite funds are contractually obligated to meet requests for more capital, the paper said, adding that several funds have capital calls scheduled for April.
 
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