Interim Close

An Interim Close is any closing of a venture fund that occurs between the first close and the final close, during which additional LP commitments are accepted and new LPs are admitted to the partnership. Most fund raises involve 2-4 interim closes spaced 2-4 months apart, allowing the GP to continue fundraising while simultaneously deploying capital from the first close. At each interim close, new LPs sign subscription agreements and are equalized with existing LPs by paying their share of capital calls already made (including interest). Interim closes allow the GP to build momentum—each close can be announced (in appropriate contexts) to signal progress and attract additional commitments. They also provide checkpoints for the GP to evaluate fundraising progress and decide whether to extend the fundraising period or hard-cap the fund. LPA provisions specify the maximum number of interim closes or the maximum duration of the fundraising period.