Investment Period End - Unused Commitment Write-Back to LPs
Recording the permanent reduction of unfunded LP commitments at the end of the investment period when the GP elects not to call remaining uncommitted capital, releasing LPs from their funding obligation.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| LP Unfunded Commitment Obligation (Released) | Commitment Memo (-) | - | 12,000,000.00 |
| GP Commitment Released | Commitment Memo (-) | - | 240,000.00 |
| Total Unfunded Commitments Released (Memo Entry) | Memo | 12,240,000.00 | - |
💡 Accountant's Note
At the end of the investment period, uncalled LP commitments (the portion of total committed capital not yet called) may be permanently released if the GP determines they will not be needed. This is a memo/off-balance sheet reduction since unfunded commitments are not on the fund's balance sheet. LPs are notified that their remaining commitment obligation has been eliminated, improving their capital planning.
Practitioner & Systems Framework
💻 ERP Architecture
Update each LP's unfunded commitment balance to zero (or to the remaining amount reserved for follow-on investments if the LPA permits continued calls for follow-ons after investment period end). Issue formal written notice to each LP confirming the release.
⚠️ Audit Flags
Auditors verify the investment period end date (which triggers the release) against the LPA definition. The remaining unfunded commitment schedule must be reconciled to the LP register. Any retained commitment for permitted post-investment-period calls must be justified by the LPA.
📄 Required Documentation
LPA investment period end provisions, investment period end determination memo, LP unfunded commitment release notice, updated LP commitment schedule showing zero remaining unfunded commitment.
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