Recruiter's Glossary

Examples: PIK Interest • Capital Call • LBO

Commitment Period

Term from Private Equity industry explained for recruiters

A Commitment Period is the specific timeframe during which investors in a private equity fund agree to provide money when the fund managers need it for investments. Think of it like a promise period - usually lasting 4-6 years - where investors must be ready to contribute their pledged money whenever the fund finds good investment opportunities. After this period ends, the fund typically can't ask for new money except for specific situations like covering ongoing expenses or completing deals that were already in progress.

Examples in Resumes

Managed investor relations for a $500M fund during its Commitment Period

Led due diligence on 12 acquisitions during the fund's Commitment Period

Structured deals to align with the Investment Period timeline

Oversaw capital calls during the Investment Period for three consecutive funds

Typical job title: "Private Equity Professionals"

Also try searching for:

Private Equity Associate Investment Professional Fund Manager Investor Relations Manager PE Investment Analyst Private Equity Principal

Where to Find Private Equity Professionals

Professional Networks

Industry Organizations

• American Investment Council
• Institutional Limited Partners Association
• Private Equity Wire

Example Interview Questions

Senior Level Questions

Q: How do you handle situations where investors want to reduce their commitment during the commitment period?

Expected Answer: Should discuss legal implications, investor relationship management, and practical solutions like finding replacement investors or negotiating modified terms while maintaining fund stability.

Q: What strategies do you use to optimize capital deployment during the commitment period?

Expected Answer: Should explain balancing investment pacing, maintaining reserves for follow-on investments, and managing investor expectations while maximizing investment opportunities.

Mid Level Questions

Q: Explain how you would structure a capital call during the commitment period.

Expected Answer: Should describe the process of calculating each investor's share, proper notice periods, documentation requirements, and timing considerations.

Q: What factors do you consider when planning the investment timeline within the commitment period?

Expected Answer: Should discuss market conditions, deal pipeline, investment thesis timing, and resource allocation across multiple potential deals.

Junior Level Questions

Q: What is the difference between the commitment period and the fund's life?

Expected Answer: Should explain that the commitment period is when new investments can be made (typically 4-6 years), while fund life (usually 10+ years) includes both investing and managing/exiting investments.

Q: How do you track remaining commitments during the investment period?

Expected Answer: Should describe basic tracking methods, including spreadsheets or fund management software, tracking called vs uncalled capital, and maintaining accurate investor records.