Issue and collect capital calls in just a few clicks.
Fundraising with capital calls is easier than ever with Covercy's all-in-one investment management platform for commercial real estate firms.
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Everything you need to know about capital calls
Capital Call Definition
A capital call is a request from a commercial real estate investment fund or sponsor to investors to provide additional capital. This can happen for a variety of reasons, such as to fund a new acquisition, make repairs to a property, or cover unexpected expenses.
Capital Flexibility
When investors commit to funding a commercial real estate fund, they typically don't transfer the full amount of their investment right away. Instead, they agree to provide the capital on a call-as-needed basis. This gives the fund the flexibility to raise capital quickly when needed, without having to wait for investors to wire the funds.
Benefits for GPs
Capital calls offer multiple advantages to General Partners (GPs). Firstly, capital calls provide the GPs with immediate liquidity, ensuring that they have access to requisite funds whenever new investment opportunities arise. This immediacy can be pivotal in the highly competitive real estate landscape, where deals often need to be sealed promptly, and waiting for traditional financing methods might result in missed opportunities. Additionally, by utilizing capital calls, GPs can strategically leverage their equity positions in various properties or projects, allowing them to undertake a wider array of ventures with a limited initial capital outlay. By doing so, GPs can optimize their portfolio diversification, spreading risks across multiple assets while still preserving the upside potential.
Benefits for LPs (Investors)
Capital calls mean that LPs don't have to provide the entirety of their commitment upfront; instead, they can keep their capital in other interest-earning assets until it is called upon. This allows LPs to maximize the utility of their capital, potentially earning returns in other avenues until it is required in the real estate investment. Secondly, capital calls give LPs better visibility into how their money is being utilized. Since GPs can only call capital as and when required for specific investments or operational needs, LPs have a clearer understanding of the deployment of their funds. The periodic nature of capital calls can serve as a checkpoint for LPs, allowing them to assess the project's progress and the GP's performance at regular intervals.
The benefits of using a platform for capital calls
Covercy is the first real estate capital calls platform with true end-to-end capital-raising features for General Partners (GPs). Because of Covercy's integrated banking features, GPs and investors can move money back-and-forth in a matter of minutes, and even earn high APY rates on uncalled capital without delayed access to funds. Covercy also integrates distribution payments seamlessly with other powerful investor management tools. Try it free today.
Automation
A fundraising & capital calls platform like Covercy provides the ability to automate many of the tasks involved in fundraising, such as sending out investor communications, tracking investor commitments, and collecting capital calls.
Integration
Covercy's investor management tool gives GPs the ability to integrate with other commercial real estate software solutions, such as property management software and accounting software.
Visibility
Investor reporting tools like Covercy give GPs the ability to provide real-time visibility into the fundraising process so that fund managers can track the progress of their fundraising efforts (and so can their investors).
Reporting
Covercy offers GPs and LPs the ability to generate and view reports on fundraising, capital calls, and profit distribution data so that managers and investors can analyze the performance of their investments.
The use of fundraising and capital calls software like Covercy can help streamline the fundraising process and improve the efficiency of capital calls. This can save GPs time and money, and it can help to ensure that capital calls are met on time.
Capital Calls with Covercy
The first all-in-one fundraising & capital calls platform for commercial real estate professionals
Send professional offering decks
Share a professional prospectus of a new property to potential investors with a click of a button on the platform.
Track investor commitments & collect e-Signatures
Manage your investors in the process from potential to soft circle to signed and finally to invested. Monitor your progress within the real estate fundraising software via a central dashboard which reflects the different status so you always have an eye on your fundraising target. Know right where you are with making your investment goal so you can close your deal on time.
Collect funds & issue capital calls with ACH Debit
Once all your investors have signed, you are ready to issue a Capital Call to collect the funds in a few simple clicks. There are three easy steps:
Issue: Auto-generate a request for Capital.
Process: Collect funds with ACH debit into your primary account.
Track: Create a system of record of all incoming funds and status.
Note: Distribution payments work similarly! Read more about ACH debit distribution payments here.
Track and organize all documents
All documents for each investor are tracked and stored by each investor. Covercy's real estate fundraising software is fully integrated with Dropbox Sign (formerly HelloSign) so signed agreements are automatically stored.
Once an investor has expressed a solid interest, share the agreement via the platform to be e-signed. You can even create templates of agreements and reuse them and have selected fields pre-populated such as names and amounts.
After signing, the investor will get a copy immediately and you will get notified together with the signed agreement. Read more about document sharing here.
Features to Look For in CRE Fundraising Software
Here are some of the features to look for when evaluating investment management fundraising platforms:
Task automation: Fundraising and capital calls software can help to automate many of the tasks involved in fundraising, such as sending out investor communications, tracking investor commitments, and collecting capital calls. This can save fund managers time and effort, and it can help to ensure that the fundraising process is efficient.
Compliance tracking: Fundraising and capital calls software can help to ensure that capital calls are met on time and in full. This can help to avoid penalties and other problems that can arise from missed capital calls.
Real-time visibility: Fundraising and capital calls software can provide real-time visibility into the fundraising process. This allows fund managers to track the progress of their fundraising efforts and make adjustments as needed.
Data-driven decision making: Fundraising and capital calls software can generate reports on fundraising and capital calls data. This data can be used to analyze fundraising performance and make informed decisions about future fundraising efforts.
Overall, fundraising and capital calls software can be a valuable tool for investment funds and sponsors. By automating many of the tasks involved in fundraising and capital calls, and providing real-time visibility into the fundraising process, this software can help to streamline the fundraising process, improve capital call compliance, and make data-driven decisions about future fundraising efforts.
Ready to streamline your capital calls?
Join the leading real estate firms using Covercy to automate capital calls and grow faster.
Tailor Covercy's capital calls software for your real estate firm
Tailor Covercy's investment management software for your real estate firm
Fundraising Starter
Syndicate faster with auto payment collections
- AI Content Generator
- eSignatures
- Automated Contribution Payments
- Fundraising Pipeline Management
- Interactive Investor Pitch Deck
- Showcase Opportunities on Your Website
- Investor Accreditation (Fees Apply)
Standard
Investor portal and automated payments
- AI Content Generator
- Investor Portal
- eSignatures
- Automated Contribution Payments
- Automated Waterfalls
- Investor Reports
- Investor Email Communications
- Document Sharing
- Automated K1 Matching
Professional
Advanced features for growing teams and funds
- Investor Portal
- Fundraising Pipeline Management
- Interactive Investor Pitch Deck
- Showcase Opportunities on Your Website
- Investor Accreditation (Fees Apply)
- Fully Customizable Permissions
- Rent Manager Integration
- Yardi Exporter
- Raw Data Integration Hub
Fund Administration
Full-service institutional fund operations and administration
- NAV Calculation & Performance
- Fund Accounting Services
- Investor Services & Capital Accounts
- Fee Calculations & Waterfalls
- Tax Support & K-1 Coordination
- Audit Support & Reconciliation
- Compliance & Regulatory Reporting
- View complete feature list