After all the commits and the subscriptions for investment X have been signed what happens next? In the past, investors would be phoned, text, or emailed the information to wire their investments. Due to investment portals, investors have the option of sending their committed investment by setting up their accounts to send and receive via ACH.
Because of advanced technology of an investor portal, the sponsor has already set up the receiving account for any ACH from investors. This will be the account use to receive investor capital as well as use for distributions back to investors. Investors upon creating their profile and accounts on the investor portal will then move onto reviewing, committing, e-signing documents for investment X.
After investors go through the set-up process of verifying their bank account on the portal, they can then ACH their invested amount via ACH and fund their investment. That is what the capital call process entails today.
If you have considered investing with a private equity investment firm, please create your investor profile with The Fortes Company at www.investwithfortes.com.
Disclaimer: The views and opinions expressed in this blog are provided for informational purposes only, and should not be interpreted as an offer to buy or sell any investment or course of action.