# Fund Close

A **fund close** is the formal admission of a group of LPs into a fund. At close, each LP signs subscription documents, commits a stated amount of capital, and becomes legally bound by the fund's Limited Partnership Agreement (LPA). The GP may accept subscriptions in a single close or in multiple closes spread over the fundraising period.

## First Close vs Subsequent Close

|                 | First Close                           | Subsequent Close                        |
| --------------- | ------------------------------------- | --------------------------------------- |
| Fund status     | Fund is constituted; investing begins | Fund is already active                  |
| Equalization    | No true-up required                   | LP pays equalization on all prior calls |
| LP incentives   | Often better fee terms                | Standard or negotiated terms            |
| Admission count | One event                             | One or more events                      |

See [First Close](/fund-mechanics/first-close.md) and [Subsequent Close](/fund-mechanics/subsequent-close.md) for details on each.

## What Happens at Close

1. **Subscription documents** are signed — the LP commits a fixed amount in the fund's base currency. See [Subscription Document](/fund-mechanics/subscription-document.md).
2. **Side letters** (if any) are executed alongside — these modify or supplement the LP's standard LPA rights.
3. **Equalization** is calculated for subsequent-close LPs — they wire their true-up alongside their first capital call allocation.
4. **Capital accounts** are opened in Gildi — the LP's commitment, unfunded balance, and paid-in capital are initialized.

## Final Close

The **final close** is the last admission event — after this date, no new LPs can join the fund. The LPA typically sets a hard deadline (e.g., 18 months after first close). Once the final close occurs, the total fund size is fixed and no further equalization calculations are needed.

## How Gildi Records Closes

Each close is a dated event on the fund record in Gildi. Adding an LP to Gildi automatically assigns them an admission date (which close they joined at), and the system uses that date to:

* Calculate equalization amounts for subsequent-close LPs.
* Apply the correct fee terms (some LPs negotiate a first-close discount).
* Determine the start of the LP's [unfunded commitment](/fund-mechanics/unfunded.md) balance.


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