Notice. This page is informational and general in nature. Any transaction remains subject to counterparty acceptability, KYC and AML, sanctions screening, diligence, definitive documentation, and third-party approvals. Obtain independent legal advice for fund documents, borrowing authority, and enforceability.
Capital Call Lines of Credit
Capital call lines of credit (subscription facilities) provide short-tenor liquidity secured by uncalled commitments. They solve timing gaps between signing and capital calls, smooth fund expense management, and reduce operational friction across closings.
FG Capital Advisors structures the facility, builds the lender-grade pack, and coordinates placement with suitable third-party lenders. Expect disciplined document work, tight controls, and bankable investor mechanics.
Request a QuoteWhat This Facility Is
A capital call line is a revolving or term facility where repayment is expected from investor capital calls. The lender underwrites the investor base, the enforceability of the call mechanics, the borrowing authority in the fund documents, and the control stack that routes proceeds to repayment.
Related mandates and structures: Fundraising , Private Placement Debt Advisory , and Equity Bridge Finding for Business Acquisitions.
Who Uses Capital Call Lines
- Private equity and private credit funds managing close-to-close timing and portfolio funding cadence.
- Real asset and infrastructure vehicles where draw schedules and milestone payments do not match contribution timing.
- Acquisition SPVs needing certainty of funds at signing and a clean funds-flow at closing.
- Manager platforms that want a repeatable facility for multiple closings rather than one-off bridge loans.
This is not a substitute for long-term leverage. It is a timing instrument designed to compress operational risk inside the fund’s capital call process.
Typical Structure
| Item | How It Is Usually Framed | What Lenders Actually Underwrite |
|---|---|---|
| Borrower | Fund vehicle or acquisition SPV with capital call rights | Borrowing authority, governance, signatories, and documented call mechanics |
| Collateral | Pledge of uncalled commitments and related rights | Enforceability, notice provisions, investor set-off risk, and call jurisdiction |
| Borrowing base | Eligible investor commitments net of exclusions | Investor quality, concentration, side letter limitations, and default remedies |
| Use of proceeds | Bridging calls, expenses, closing mechanics | Clear permitted uses, prohibitions, and traceable funds flow |
| Tenor | Short tenor with expected repayment from calls | Liquidity plan under stress, cure periods, and realistic call timelines |
| Controls | Controlled accounts and call proceeds sweeps | Account control, payment waterfalls, reporting, and covenant triggers |
| Documentation | Facility agreement + collateral and notice suite | LPAs/subscription docs, investor notices, security filings, counsel opinions |
If your structure also touches trade flows or documentary settlement mechanics, align it with Trade Finance Structuring and Fundraising and document-grade controls.
The Core Problem We Solve
Most capital call lines fail for predictable reasons: investor eligibility is not clean, side letters quietly restrict calls, the fund documents do not clearly authorize borrowing, or controls are too loose for a lender’s comfort.
Our job is to tighten the structure so it can be defended in underwriting, documented cleanly, and operated without constant exceptions.
Deliverables
- Facility structure memo defining borrower, collateral, borrowing base logic, and control stack.
- Lender-grade pack including a clean summary of fund documents, investor eligibility, concentration, and call mechanics.
- Data room map with a document checklist aligned to underwriting workflows.
- Term sheet coordination to lock economics, conditions precedent, and reporting expectations early.
- Closing coordination through approved counterparties, subject to compliance and definitive documentation.
Related reference pages: Private Placement Debt Advisory and Trade Finance Term Sheet.
What We Need From You
A capital call line is document-led. If the paperwork is weak, the facility will be priced badly or declined.
- Fund and governance documents: LPA, subscription documents, side letters summary, borrowing authority, signatory list.
- Investor schedule: commitments, funding status, jurisdiction, and concentration view.
- Capital call mechanics: notice process, timing, default remedies, and any investor set-off limitations.
- Use case and funds flow: what the facility will fund and how repayment is routed.
- Compliance inputs: KYC and AML pack and sanctions screening readiness.
Process
| Step | What Happens | Output |
|---|---|---|
| 1) Triage | Map the use case, investor base, call mechanics, and document gaps. | Feasibility view and structure recommendation. |
| 2) Structuring | Define borrowing base logic, eligibility rules, controls, and reporting cadence. | Structure memo and draft term sheet points. |
| 3) Lender Pack | Build the lender-grade pack and data room aligned to underwriting questions. | Ready-to-send package for capital providers. |
| 4) Placement and Closing | Coordinate terms, conditions precedent, counsel workstreams, and closing mechanics. | Executed facility documentation and operational playbook. |
Why FG Capital Advisors
FG Capital Advisors is a corporate finance advisory firm focused on private credit solutions across trade-related businesses and structured finance mandates. We approach subscription lines like a lender does: document discipline, enforceability, controls, and monitoring.
See also: Private Placement Debt Advisory and Global Trade Finance Advisory.
FAQ
What is the difference between a capital call line and a bridge loan?
A capital call line is designed to be repaid from investor capital calls. A bridge loan is usually repaid from operating cash flows, asset sale proceeds, or specific receivables. Different repayment source, different underwriting lens.
Is a capital call line only for funds?
No. Acquisition SPVs with enforceable capital call rights can also be eligible, subject to document authority and investor quality.
What collateral does the lender typically require?
Lenders typically require a security package over uncalled commitments and related rights, plus controlled accounts and notice mechanics. The exact package is determined by governing documents, jurisdictions, and lender policy.
Do you provide direct lending?
No. We structure and coordinate placement with suitable third-party lenders. All work is best-efforts and subject to approvals.
How quickly can this close?
Timing depends on document readiness and responsiveness. Clean fund documents and a clear investor schedule move faster. Weak borrowing authority or unclear side letter restrictions slow everything down.
Do you guarantee terms or lender approvals?
No. All outcomes remain subject to diligence, compliance clearance, lender credit approval, and definitive documentation.
Submit your fund documents, investor schedule, and use case. If the file is executable, we will revert with a structured plan covering borrowing base logic, controls, lender pack scope, and placement steps.
Request a QuoteDisclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors is not a bank or lender and does not accept client money. Any support is provided on a best-efforts basis and remains subject to third-party approvals, diligence, compliance checks, and definitive documentation. No funding, pricing, or timeline is guaranteed.
