Capital Commitments

Capital commitments refer to the legally binding agreements that investors or organizations make to provide a certain amount of funding to a project, fund, or business over time. These commitments are like a promise to invest a specified sum when called upon, even if the money is not immediately transferred. They are typical in private equity or large investments, ensuring that sufficient resources will be available as needed for ongoing or future expenses. Essentially, capital commitments guarantee that investors will supply the necessary funds when the organization or fund requests them.