Capital Calls

Overview

When investors commit to contributing capital, Sponsors choose when and how much of the capital will actually be called. When Sponsors are ready to call capital, IMS allows you to notify investors of current capital needs, track incoming capital, and easily calculate outstanding capital.

To create a Capital Call, follow the steps outlined below.

Step 1:  Navigate to the Project Summary page of the applicable project. Select the Capital Calls tab. Select Add Capital Call:

Step 2:  Select Get Started:

Step 3:  Add your Capital Call Name. Choose to Associate the Capital Call to an open Commitment, if applicable. 

Step 4:  Add your Call Amount, Payment Due Date and Purpose.

Pro tip:  If your Capital Call is tied to an open Commitment, there will be a Funds Outstanding balance (under the Call Amount field) that shows the available funds associated with the Commitment. 

Step 5:  Add Investors and Request Amounts.

If your Capital Call is tied to an open Commitment, the investors from the associated Commitment will populate for you. The option to Equally call based on the Commitments Outstanding will allocate the Capital Call per investor based on the outstanding Commitment amount.

If your Capital Call is not tied to an open Commitment, you will need to enter the investors and their Requested Amount fields.

Step 6:  Send the Request Funds notification to investors. Choose the desired contacts, and then select the Request Funds button. If you would like to request funds for all contacts on the list, click Request Now in the yellow banner. You can select specific investors to send the Request Funds notification to by selecting the checkbox next to their name and selecting the Request Funds button. You also have to option to adjust the Requested Amount field for any investor or delete them from the Capital Call by using the trash can icon.

Pro tips:

- Before requesting funds, make sure to enter escrow instructions for the entity from which you are running the Capital Call. For step-by-step instructions, select the following link: How to add escrow instructions for Capital Call. 

- You can customize the Request Funds notification beforehand by navigating to Investor Settings > Portal Notifications > Request Funds.  To learn more about customizing portal notifications, select the following link:  Customizing Portal Notifications.

- If you do not need to send the Request Funds notification you can select Save to skip to the tracking of each transaction in the Transactions tab.

Step 7: When all the information is accurate, select Yes, Send to send the Request Funds portal notification to your investors.

The investor will receive an email similar to the image below, pulling in the escrow instructions you entered for the entity prior to requesting funds.

Step 8:  Navigate back to the Project Summary to see a rollup of the Commitments Requested, the Committed amount, Contributed amount, and the total Being Called. Note the dropdown defaults to All Capital Calls. Select the dropdown to drill into a particular Capital Call (if you have more than one capital call in the system). To update payments, select the Transactions tab above the list of investors.

As you receive checks, wires, etc., this information is tracked in the Transactions tab. If someone paid the funds you requested in full, simply click the blue right arrow to add the total in the Amount Received column. Choose the applicable Investment Date, Received On Date, and Payment Type. The Status will automatically update. Completed under the Status column means the payment was paid in full, Incomplete means the payment has not been paid in full yet, and Pending means that no payment has been received yet.

Step 9:  When you have received all funds for the capital call, from the All Capital Calls drop-down, select the Capital Call and select the checkbox to close the capital call.

Select Confirm to close the Capital Call.

All Closed Capital Calls will be in the Closed tab.

Select View Details to see a summary of the closed Capital Call. Select Reopen Capital Call if you wish to reopen at any time.