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Fund Raising

Definition of 'Fund Raising'

The process through which a fim solicits financial commitments from limited partners for a private equity fund. Firms typically set a target when they begin raising the fund, and ultimately announce that the fund has close at a certain amount, meaning that no additional capital will be accepted.

Sometimes, however the firms distinguish between interim closings and final closings. The term "cap" is used to describe the maximum amount of capital a firm is willing to accept into its fund.