01 / Decision Lab

Fund a new project, then meet the call.

A €100m fund holds €12m of cash and has promised a private fund manager more money it has not yet paid — an uncalled commitment. You may move some cash into a new illiquid project today. Markets then move, and the commitment is called. Can the call still be paid, and at what cost?

Fictional educational case. All figures are illustrative.

Your inputs · € millions

New project investment from cash today

0–10, steps of 0.5

Capital call due after the scenario

0–12, steps of 1

The whole uncalled commitment becomes due. It is a memo amount, not part of NAV.

Market scenario

Positive marketMarket stress

Equities +8% · Bonds +3% · Existing private +6% · New project +10% · Cash 0% · Bond sale discount 0%

Allow bond sales to fund the callNo borrowing or equity sales are possible in this case.

STAGE 1

Starting allocation and transfer

Opening€100.00m

After transfer€100.00m

Paying €4.00m for the project is a transfer, not a loss: cash falls to €8.00m and the project enters at the same value, so NAV stays at €100.00m. The €8.00m uncalled commitment is shown separately and never subtracted from NAV.

STAGE 2

Before the call · after positive market

€ millions	Retain cash	Your decision	Difference
Listed equities	€48.60m	€48.60m	—
Bonds	€25.75m	€25.75m	—
Existing private assets	€19.08m	€19.08m	—
New project	€0.00m	€4.40m	+€4.40m
Cash	€12.00m	€8.00m	−€4.00m
Pre-call NAV	€105.43m	€105.83m	+€0.40m
Private-assets share (pre-call)	18.1%	22.2%	4.1 pts

Retain cash

Cash €12.00m vs call €8.00m

Cash covers the call

Your decision

Cash €8.00m vs call €8.00m

Cash covers the call

STAGE 3

After the call

StatusRetain cash: Call funded from cash · Your decision: Call funded from cash

Retain cash · after call€105.43m

Your decision · after call€105.83m

Closing holdings after the call
Holding	Retain cash		Your decision
Listed equities	€48.60m	46.1%	€48.60m	45.9%
Bonds	€25.75m	24.4%	€25.75m	24.3%
Existing private	€27.08m	25.7%	€27.08m	25.6%
New project	€0.00m	0.0%	€4.40m	4.2%
Cash	€4.00m	3.8%	€0.00m	0.0%
Total NAV	€105.43m	100.0%	€105.83m	100.0%

Closing NAV: Retain cash €105.43m · Your decision €105.83m
Closing cash: Retain cash €4.00m · Your decision €0.00m
Private-assets share: Retain cash 25.7% · Your decision 29.7%
Bond-sale discount loss: Retain cash €0.00m · Your decision €0.00m

Reading the result

Investing €4.00m reduces the cash available for the call from €12.00m to €8.00m and adds exposure to an illiquid asset. Under the positive market assumptions the project moves +10% while cash earns 0%, so pre-call NAV is +€0.40m relative to retaining cash.

Cash gap is the call minus cash on hand, if positive. It is not the same as total liquid assets: listed equities and bonds can be sold, but this case only allows bond sales, and only when you switch them on. NAV is the sum of holdings at the current stage. Private-assets share is existing private assets plus the new project, divided by NAV at that stage — paying the call raises it without changing NAV.

This case does not recommend an amount, forecast markets or score readiness. Two synthetic scenarios are not a distribution of outcomes. See the methodology for every formula.

Fund a new project, then meet the call.

Your inputs · € millions

Results

Starting allocation and transfer

Before the call · after positive market

After the call