PE Capital Call Line

I currently work at a PE Fund and will begin having significant capital calls as we deploy the fund. We don't have a capital line in place for members of the fund to fund their capital commitment with, so I was wondering if anyone here knows of any banks that establish personal capital call lines for employees of PE funds to fund their capital calls. I'm looking to fund my capital calls in cash, but in the event I'm tight on cash from rapid deployment, I'm looking to set up a facility to be able to draw on a line to fund my investment.

What have others done in the past? Have others used personal line of credits or home equity lines? Any ideas would be helpful.

Comments (3)

 
May 24, 2020 - 1:50pm

Interested in this as well, particularly in regard to the typical interest rates and other general terms of these credit arrangements (e.g. upon leaving said PE firm with borrowed capital still tied-up in investments, will the lending facility have some sort of automatic repayment trigger that is executed?)

Edit: To the OP's original question, check out First Republic and Silicon Valley Bank. Both offer solutions that you are looking for.

First Republic - https://www.firstrepublic.com/business/business-lending/private-equity-…

Silicon Valley Bank - https://www.svb.com/private-equity-venture-capital

 
May 24, 2020 - 11:13pm

I spoke to First Republic. They do capital lines at the fund level but not at the individual level. They however will do a personal line of credit which starts at $60k but requires 1.5x of cash or equities in a non retirement account on hand (so $90 minimum), and they don't give any credit for illiquid securities (like PE investments), so makes it kind of hard to qualify.

 
May 24, 2020 - 11:17pm
Start Discussion

Popular Content See all

Student-run private equity funds?
+37IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Do I quit IB for YouTube
+31IBby 3rd+ Year Analyst in Investment Banking - Industry/Coverage">Analyst 3+ in IB - Ind
I wish I was an airline pilot
+25OFFby Vice President in Investment Banking - Mergers and Acquisitions">VP in IB-M&A
BMO fired all of its Houston Bankers (~60 people)
+22IBby Intern in Investment Banking - Mergers and Acquisitions">Intern in IB-M&A
Zoom events are cringe as hell
+18OFFby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A
Spend the salary, bank the bonus?
+12IBby Incoming Analyst in Investment Banking - Mergers and Acquisitions">Incoming Analyst in IB-M&A

Total Avg Compensation

December 2020 Private Equity

  • Principal (6) $693
  • Director/MD (14) $640
  • Vice President (56) $360
  • 3rd+ Year Associate (60) $272
  • 2nd Year Associate (112) $246
  • 1st Year Associate (246) $224
  • 3rd+ Year Analyst (23) $162
  • 2nd Year Analyst (54) $140
  • 1st Year Analyst (158) $119
  • Intern/Summer Associate (17) $66
  • Intern/Summer Analyst (172) $60

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.4
2
Secyh62's picture
Secyh62
98.3
3
Jamoldo's picture
Jamoldo
98.3
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.8
6
bolo up's picture
bolo up
97.5
7
NuckFuts's picture
NuckFuts
97.5
8
frgna's picture
frgna
97.5
9
Edifice's picture
Edifice
97.5
10
Ricky Rosay's picture
Ricky Rosay
97.3