North Carolina Ranked One of America’s Most Charitable States for 2022

Charlotte Stories
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North Carolina Ranked One of America’s Most Charitable States for 2022

With Americans having donated over $471 billion in 2021, up 5.1% from the previous year, the personal-finance website WalletHub today released its report on the Most Charitable States for 2022.

To determine where the most generous Americans are inspiring others to be more selfless, WalletHub compared the 50 states based on 19 key indicators of charitable behavior. The data set ranges from the volunteer rate to the share of income donated to the share of sheltered homeless.

Most Charitable States in America

Overall Rank*  State Total Score  Volunteering & Service  Charitable Giving 
1 Utah 71.09 2 5
2 Maryland 67.84 5 7
3 Minnesota 67.72 3 9
4 Oregon 65.80 1 30
5 North Dakota 64.45 4 21
6 Pennsylvania 62.86 12 13
7 Virginia 62.73 28 3
8 Colorado 62.58 20 4
9 Ohio 62.51 11 16
10 Georgia 62.01 34 2
11 Alaska 61.62 7 29
12 Wyoming 61.39 14 18
13 Washington 61.38 17 15
14 Arkansas 60.96 21 10
15 Maine 60.82 6 35
16 New Hampshire 60.51 10 28
17 New York 59.67 45 1
18 North Carolina 58.92 23 14
19 Massachusetts 58.02 41 6
20 Wisconsin 57.96 19 24
21 Idaho 57.89 8 45
22 South Dakota 57.73 15 38
23 Illinois 57.69 37 12
24 Delaware 57.30 9 47
25 Florida 57.07 40 11
26 Connecticut 56.77 30 17
27 Montana 56.63 18 34
28 Nebraska 56.59 13 46
29 Missouri 56.47 32 20
30 New Jersey 55.93 33 18
31 Indiana 55.82 16 44
32 Oklahoma 55.80 22 33
33 Kentucky 55.16 24 37
34 Texas 55.06 25 36
35 Vermont 54.96 26 32
36 Kansas 54.71 39 22
37 Tennessee 54.01 36 27
38 South Carolina 53.97 38 26
39 California 53.33 50 8
40 Michigan 53.04 42 25
41 Hawaii 52.28 29 41
42 Iowa 51.37 31 42
43 Alabama 51.36 46 23
44 Nevada 51.31 35 40
45 West Virginia 50.56 27 48
46 Rhode Island 50.36 44 31
47 Louisiana 47.88 48 39
48 Mississippi 45.78 49 43
49 Arizona 45.11 43 50
50 New Mexico 44.02 47 49

*No. 1 = Most Charitable
With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

Do you agree with the report? 

Five Fun Activities for a Stormy Night

Sharon Anderson
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Five Fun Activities for a Stormy Night

What should you do if a sudden thunderstorm ruins your best-laid preparations for the evening? Should you cancel or come up with a new idea? Get inventive and, of course, organize an indoor night of fun! There are so many activities that can keep you busy that you may end up hoping for another stormy night in!

Indoor Dining

Whether it’s a family affair, a date, or just you and your mates, why not research and cook a new cuisine? You can take it a step further by setting up a home restaurant complete with menus and table décor. Turn down the lights, light some candles, switch on the fairy lights, and savor your home-cooked cuisine. You could consider refreshing your mixology skills too. Spend the evening inside mastering the art of the classic cocktail that you can serve to your friends or pour for yourself after a long day at the office. Once you’ve mastered the fundamentals, you can tweak the recipes to fit your preferences. 

Head Outdoors

You could decide to brave the weather and head outdoors for some fun. Let your inhibitions go and dance in the rain, jump in puddles and let yourself get soaked. Try having a little photo shoot in the rain too – the images you capture could be quite magical. Once you have had your fill of the weather, have a steaming hot shower, and get dressed in those snuggly pajamas for a cozy cup of hot chocolate. 

If you want to venture out, but want to avoid getting wet, why not go bowling? Visit the ice rink for some fun on the ice or play laser tag. You could even visit the arcade for some good clean fun, testing your skills and trying out new games. Consider a pub quiz or trivia night or go bar hopping with a group of friends – just don’t forget your umbrella!

Get Gaming

Why not organize an evening of board games or good old-fashioned card games? Think of the ones you have not played in a while, such as Monopoly, Cluedo, Go Fish or poker. You could even sign up at Spin Palace for excellent entertainment options when it comes to online casino games. 

Spoil Yourself

Another great stormy evening activity is to slip into a bubble bath prepared to perfection. You can use shop-bought products or prepare your own. Perhaps your hair has been crying out for a deep conditioning treatment. Why not use the time to treat yourself? Make a homemade body scrub from kitchen ingredients and let your mind and body relax. 

Movie Magic

Consider going to the movies, or better yet, stay home and make a movie night at home complete with popcorn and slushies. Try a movie marathon of the Star Wars series or the Twilight sagas if those are more your cup of tea. Try to mix it up with old classics and newer releases. You could also watch a documentary or listen to a podcast that you have had on reserve for that perfect time. You might even enjoy taking a virtual museum tour or streaming a Broadway show into your living room. 

The list is endless when it comes to fun things to do on a stormy night. Be creative and proactive. Start a journal or do some doodling. Both these things are beneficial to your mental health wellbeing. Why not update your bucket list? Even if you’re stuck at home sheltering from the rain, you can always fantasize about a warm seaside resort or a beautiful mountain getaway. This is the perfect opportunity to research and plan your next holiday. So, ride it out and enjoy the storm.

Who Are the Top Veteran Service Providers Here in Charlotte?

Sharon Anderson
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Who Are the Top Veteran Service Providers Here in Charlotte?

Free Meals And Services in Charlotte on Veterans DayNorth Carolina is home to over 800,000 veterans, and of those numbers, approximately 150,000 live in the Charlotte region. A city that supports vibrant cultural diversity by blending contemporary lifestyle with Southern charm, Charlotte has one of the fastest-growing economies in the U.S. It leads the state financially with the help of eight Fortune 500 company headquarters, six professional sports teams, the US National White Water Center, the NASCAR Hall of Fame, and an airport that is quickly becoming an “International Gateway to the South.”

A recent poll conducted by Wallethub scored Charlotte at Number 19 overall for the quality of life when it came to the veteran population. In other areas, the city ranked it at Number 69 for health, at 9 for its economy, and at 7 for jobs. The titles for the best cities, however, according to Wallethub were scooped up by Austin, Texas; Colorado Springs, Colorado; Virginia Beach, Virginia; Raleigh, North Carolina; and Plano, Texas.

Even though the poll seemed to point to an overall decline of unemployment and homelessness rates amongst veterans, based on data from the departments of Labor and Veterans Affairs, the reality could be slightly different than the picture portrayed by these figures. All in all, though, it was nonetheless an important step toward correctly gauging how many veterans were actually in sustainable employment situations.

Veteran services all over the nation strive to provide health care, disability compensation, insurance, education and training, pension, home loans, Veteran Readiness and Employment programs, and even burial services to veterans in need. Charlotte is not behind when it comes to making big and essential changes for the veteran population, as well as providing easily procurable services. Here is a list of five of the best veteran service providers currently active in the Charlotte region. 

Veterans Bridge Home

The kind and educated staff at Veterans Bridge home realize how difficult it can be to transition to civilian life following active military duty. This is why they’ve made it their mission to help connect and enhance the relationship of veterans with their family members. They help veterans reunite with their family members, navigate employment opportunities, pursue a new profession, locate essential services, and build new social connections. 

They will leave no stone unturned until you’ve had the opportunity to get the best care and guidance. Veterans Bridge home, along with their coordination partner NCServes, was able to garner ties with over 70 service providers across ten counties. They also continue to get massive support from the Governor’s office which aims to make North Carolina the “most veteran-friendly state in the country.”

Charlotte VA Health Care Center

Charlotte is home to one of the biggest VA health centers in the country. The $104 million, five-story establishment located at Cascade Pointe Boulevard and West Tyvola Road offers outpatient services to veterans. From basic services to specialty care (such as physical therapy, MRIs, and dialysis), everything is covered by this government body that has multiple branches operating in the city. 

Mecklenburg County Veterans Services

Military veterans or family members of military veterans looking to claim the benefits and services entitled to them can get in touch with Mecklenburg County Community Support Services. Currently, the Mecklenburg County Veterans Services Division is serving veterans by appointment only, so call them before you make a visit. 

Charlotte Veterans Center

The Department of Military and Veteran Affairs (DMVA) has qualified specialists on their team who are committed to bridging the gap between veterans and the benefits allocated to them. They have 12 offices located in various counties which coordinate with each other to maximize the benefits for veterans. All the services provided by them such as access to current federal, state, and local veterans’ programs, entitlements, and referral services are accessible 24/7 without any charge. 

It is quite clear from their mode of operation that they aim to create a transparent and free portal for veterans and their family members to claim the benefits they have earned. And no doubt, providing these essential services – like education, healthcare, and drug rehab for veterans – can mean a great deal to people who are suffering from PTSD and want to reintegrate themselves into society. There is arguably nothing nobler than risking your life for your country, which is why it is our collective duty to help promote and improve veteran services.

Blockchain and Bitcoin Revolution in Multiple Industries

Sharon Anderson
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Blockchain and Bitcoin Revolution in Multiple Industries

Although for some people, cryptocurrency is a new idea of financial investment for many, it has been a beautiful source of funding money for a long time. Cryptocurrency is a class investment that requires little data and fundamental analysis. The theory of Bitcoin is pretty straightforward with its objective and subject. However, some people do not know that preparing the mind with the following points is essential before making high-risk investments and moving with the arena. 

  • Don’t Bet When Not Sure. 

Out of excitement and phenomenal Returns, many people open their funding account and invest. Unfortunately, the greed of becoming a multi-millionaire in one year puts the water mouth in a problematic situation. Risk is part of cryptocurrency, but one should initially involve themselves with high bets. An inexperienced individual can never make a good amount initially because the market is volatile and covered with high-risk. 

It can only make them familiar with the exchange and give guidelines about improving their portfolio. But it is advisable to understand the values before allocating the funds. 

  • Extreme Volatility 

Cryptocurrencies investments are the best resources for learning about digital market evolution. Most people think that to digest the volatility, they need to increase their investment. The uncertain market comes with many reasons, but the overnight changes in the price and investment can crush your soul. Therefore, it is better to be a loyal participant of cryptocurrency. After becoming experienced with the volatile market, investment with variations can implement. 

Why Restaurant Accept Bitcoin? 

Every currency comes with several favourable choices and benefits. The wide acceptance of Bitcoin cash in restaurants is because of the relatively new changes. 

  • Attractive source

Bitcoin is fast in attracting the business, and it has incredible sources and software that determines every possible change. Some people are working behind the software and organizing the resources for the organizations. Bitcoin is publicly open for everyone, and restaurants positively react towards Bitcoin payment. 

  • Better Option 

Nothing is more impressive than having multiple payment options with the customers. Sometimes out of no clue, the credit card does not work. Bitcoin is best in every way because it has more customers and companies.

Bitcoin In Movie Industry 

Nodes operate the computerized coin. The peer network is equipped with political freedom. Bitcoin demonstrates nongovernment authorities, and the scenario of removal of intermediaries from the system had made digital money stronger. Watching movies are a convenient source and counted as best for entertainment. 

  • Public Ledger 

Blockchain manages the Bitcoin network. All information regards to cryptocurrency comes under the verification process of the Technology. The exceeding use of Bitcoin in the movie industry is because of the accessibility and participation of customers in improved Digital networks. Digital money is demolishing the traditional type and ensuring the blockchain database. The Hollywood industry is the first significant sector where new Technology evolves and eradicates hazardous Associations such as digital piracy. 

According to Immediate Edge, the rich sources of Bitcoin make it the mainstream finance, and the Technology claims to subsidize global service to each industry like the film industry. Moreover, the positive acceptance Hollywood industry and promotion of transparency by blockchain technology confirm that the owner is in the right hands. 

  • Democratic payment

Consumers always consider the content which is helpful for them. The market keeps on changing. For instance, the involvement of a new blockchain model around the film industry provides the user with sizzling aspects. The setup of blockchain is based on productivity and content creation. 

The payment done through Bitcoin provides the content creator with ample annual profit. The wide accessibility regularly makes the users active and aware of creative innovation. The prominent reasons and 20% increase in the revenue of American movies is due to the support of developed cryptocurrency. Customers acknowledge the cryptocurrency framework, and the small players make wise decisions. 

To conclude, every industry is introduced with Complex cryptocurrency and smart contracts. In addition, Bitcoin blockchain is adopted by several industries for self-recording. The codes of Technology demonstrate the information and provide constructive instruction. Crypto asset has a solid fan base and due to which engagement of quality work with other sectors producers tons of content services.

Mecklenburg County Passes Measure To Officially End The Indoor Mask Mandate

Charlotte Stories
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Mecklenburg County Passes Measure To Officially End The Indoor Mask Mandate

Last night the Mecklenburg Board of County Commissioners (BOCC) met to discuss the indoor mask mandate. They ultimately voted to officially end the mandate, while also encouraging individuals in high-risk groups to continue to wear face coverings in public indoor settings.

The mandate will officially end on February 26th.

“Current trends point to a shift in COVID-19 conditions and indicate the need for a revised response plan that encompasses prevention, surveillance, and equitable distribution of resources,” said Mecklenburg County Public Health (MCPH) Director Dr. Raynard Washington.

How do you feel about the ending of the mandate?

2022 Belmont Friday Night Live Concert Series Returning This Spring

Charlotte Stories
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2022 Belmont Friday Night Live Concert Series Returning This Spring

Get ready to dance in the streets again during Belmont’s 2022 Friday Night Live concert series.  The fun kicks off in downtown on April 29th with The Breakfast Club! Bring your family and friends down to Main Street for a fun night full of great music, cold drinks, and lots of dancing!

The 2022 schedule includes six concerts held on various Fridays in April, May, June, and July. The concerts will be held on South Main Street adjacent to Stowe Park from 6:00pm to 10:00pm. The evenings will kick off with the opening of the beverage garden and music provided by local DJs. The featured bands will take the stage at 7:00pm. S. Main Street will be closed beginning at 1:00pm on concert days, so please plan accordingly and don’t forget to bring your best dance moves!

The Downtown Belmont Development Association (DBDA) is thrilled to be bringing back its first full series of concerts since 2019. After the limited concert series in 2021 and the response to other outdoor events last fall, it was clear that the community is excited to have outdoor events back for everyone to enjoy in downtown.

Belmont will kick off its concert series with fan favorite The Breakfast Club on Friday, April 29th.  This concert will not only open the 2022 concert season, but it will also be the start of a weekend full of music, arts, culture, and festivities during Belmont’s annual Garibaldi Festival taking place on Saturday, April 30th.  Staff felt it was important for this festival to come back with a bang after a two-year hiatus.  Belmont has been focused on increasing arts and culture in its community, as demonstrated by the Moonlight on Main event this past fall and thought this was a great opportunity to continue that momentum.

The full 2022 concert schedule includes:

April 29 – The Breakfast Club, “the longest running, most recognized 80’s tribute band in the United States”
May 13 – 20 Ride,” America’s #1 Zac Brown Tribute Band”

May 27 – Funky Monks, “America’s premier Red Hot Chili Peppers tribute band”

June 10 – Abbey Road, “one of the most musically and visually satisfying Beatle tribute acts in the world”

June 24 – 120 Minutes, “90s Alternative, Pop, and Rock tribute band”

July 2 – Java Band, “Jazz, Rock, Motown/Beach, R&B, Hip Hop, and Country, they do it all”

Vendor, sponsor, and volunteer opportunities are available. For more information, visit https://www.cityofbelmont.org/fridaynightlive/, or contact the Community Development Coordinator, Cassidy Lackey.

Charlotte Region Currently Holds 7 Guinness World Records

Steve
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Charlotte Region Currently Holds 7 Guinness World Records

Charlotte is becoming a true hub of entrepreneurs, visionaries, and record setters.

We are now home to the largest bank in North America, the world’s largest flying flag, one of the fastest-growing mortgage companies in the country, the 8th best burger in America, and the #1 greatest basketball player of all time (Michael Jordan).

We are also currently home to 7 Guinness World Records, including;

#1 Most runners linked to complete a 5 km race

Who – THE CHARLOTTE RUNNING CLUB
What – 179 PEOPLE
Where – Huntersville, NC
When – 13 DECEMBER 2014

The most runners linked to complete a 5 km race is 179 and was achieved by The Charlotte Running Club (USA) in Huntersville, North Carolina, USA, on 13 December 2014.

All participants were tethered together for the complete race.

#2 Most flashlights lit simultaneously

Who – ENERGIZER HOLDINGS, INC.
Where – Charlotte, NC
When – 21 MAY 2011

The most flashlights lit simultaneously was 70,854 organized by Energizer Holdings, Inc. (USA) at the Charlotte Motor Speedway in Charlotte, North Carolina, USA, on 21 May 2011. The attempt was made by spectators ahead of the 2011 NASCAR Sprint All-Star Race. The attempt was made as part of Energizer’s “Light up the Night” campaign, urging the race fans to “flash their brights.”

#3 Longest stoppie (front-wheel wheelie) on motorcycle

Who – JESSE TOLER
Where – Charlotte, NC
When – 05 OCTOBER 2012

The longest stoppie on motorcycle is 1320.3 feet (402.42 meters), achieved by Jesse Toler (USA), at the Z-Max Dragway, Charlotte Diesel Super Show, in Charlotte, North Carolina, USA, on 5 October 2012.

#4 Largest paint brush mosaic

Who – OLYMPIC PAINTS AND STAINS
What – 30.863 SQUARE METRE(S)
Where – Charlotte, NC
When – 06 JUNE 2016

The largest paint brush mosaic is 30.863 m² (332.21 ft²) and was achieved by Olympic Paints and Stains (USA) in Charlotte, North Carolina, USA, on 6 June 2016.

Over 30,000 paint brushes were used in this attempt.

#5 Karting – greatest distance in 24 hours indoors (individual)

Who – TREY SHANNON
Where – Charlotte, NC
When – 09 NOVEMBER 2014

The greatest distance by kart in 24 hours indoors is 733.58 km (455.83 miles), achieved by Trey Shannon (USA) at Victory Lane Indoor Karting, Charlotte, North Carolina, USA, on 9-10 November 2014.

Trey completed his karting marathon on a Sodi GT5 kart.

#6 Largest object unboxed

Who – VOLVO TRUCKS
What – 21.95 M METRE(S)
Where – Charlotte, NC
When – 11 MAY 2017

The largest object unboxed measures 21.95 m (72 ft), achieved by Volvo Truck (USA), in Charlotte, North Carolina, USA, on 11 May 2017.

The unboxed object was a Volvo VNL truck model, housed in a specially constructed 23.46 m (77 ft) cardboard box with cellophane windows, to surprise a 4 year old fan who performed the official “unboxing.”

#7 Largest toppling domino stones

Who – PRUDENTIAL FINANCIAL INC.
What – 9.18 X 4.57 X 1.25 METRE(S)
Where – Charlotte, NC
When – 06 AUGUST 2014

The largest toppling domino stone measures 9.18 m (30 ft 1.5 in) in height, 4.57 m (15 ft) in width and 1.25 m (4 ft 1.5 in) in length, and was toppled by Prudential Financial Inc. (USA), in Charlotte, North Carolina, USA, on 6 August 2014.

(all above record data taken from guinnessworldrecords.com)

Updates to Legal Sportsbetting Framework in North Carolina

Sharon Anderson
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Updates to Legal Sportsbetting Framework in North Carolina

Gambling in the USA has a long history. From famous poker games back in the Wild West, over first mechanical slots in 1896, all the way to the world’s most popular gambling escape metropolis – Las Vegas… Americans simply enjoy a nice portion of excitement from time to time.

Interestingly, the online gambling revolution wasn’t so well-accepted in any of the fifty states; this virtual method of betting is on a long and bumpy road to becoming completely legal. In some states, regulations on this subject are still a bit blurry.

Gambling in North Carolina

North Carolina is one of those US states where laws are fairly conservative; Players from the NC are legally allowed to participate only in the games inside casinos on Indian reservations the Eastern Band of Cherokee Indians and the Catawba Indian Nation, and only by the following rules:

  • Complimentary drinks are strictly prohibited
  • All form of advertising is restricted
  • The Tribes are required to place responsible gaming signs and helpline phone numbers
  • Players must be at least 21 years old to participate in a Class III game

Additionally, the Eastern Band and the Catawba Indian Nation are certified to offer sports wagering. In 2019, North Carolina set a law that allowed wagering on sports events on tribal lands. The first betting place opened in Cherokee Casino Resort and marked a huge success. This is valid only in land-based establishments, no mobile sports betting is permitted.

The Tribal Gaming Commission for the Eastern Band of Cherokee Indians is in charge of regulations of fun activities related to gambling in Eastern Cherokee Lands until the year 2045, and Tribal Gaming Commission handles Catawba Indian Nation land till 2051 unless extended by parties.

Moreover, the state of North Carolina gave a green light to bingo and raffles but only if they are sponsored by nonprofit organizations. In simple words, US consumers can engage in a game, only for a good purpose – if the money spent on gambling goes to charity. Again, under harsh rules. No more than two charity gambling events per week, with at least 48 apart from each event.

Things are looking better in the State Lottery section. North Carolina permits its citizens to participate in the Lottery, but the story, of course, has a smart and practical background; all the money collected from the Lottery is invested into education in NC.

Online Gaming in North Carolina

Obviously, online gaming isn’t on the list of allowed gambling activities; it’s still not legalized and regulated, therefore it’s prohibited for any player to participate in any kind of game based on luck in an online establishment.

However, there are indications this may change in the future. The change wouldn’t be massive, but it would still mark progress on the long path of regulating the online gaming laws in this US state.

Specifically, the State Senate proposed a bill in 2021, which would allow players to legally gamble on remote devices during major sports events, such as The Super Bowl. This could mean a small, but significant step forward to legalizing online gambling, in total.

But, this idea brings some concerns, as well. The State is worried that the potential law could bring problems such as gambling addiction, as it’s estimated that around 2 million Americans already have developed a gambling addiction.

Many impatient players in North Carolina are eager to find out will this proposed bill be approved. The law is expected to be launched in late 2022, or early 2023.

Charlotte Region Logs $3.2 Billion in Investment Last Year – 2021 Growth Report

Charlotte Stories
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Charlotte Region Logs $3.2 Billion in Investment Last Year – 2021 Growth Report

The Charlotte Regional Business Alliance just released 2021 Growth Report, showing impressive growth figures for the Charlotte region, even in the face of the Pandemic.

According to the report, “the region saw a total of 103 announcements, which represents over 9,000 jobs and $3.2 billion in capital investment”.

We witnessed a 23% increase in major job announcements and a 10% increase in announced capital investment over 2020 numbers. The largest came in the form of Kroger’s $92 million high-tech Concord manufacturing facility announcement. Just over 60% of all of the economic announcements last year came in the manufacturing sector.

Another interesting note in the report was the largest job growth sector in the second half of the year was in Government, which grew by over 8%, largely due to the influx of federal stimulus funds for pandemic relief.

You can read the entire report on The Charlotte Regional Business Alliance’s site here.

When Should a Capital Call Be Used?

Steve
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When Should a Capital Call Be Used?

Private equity funds that need a cash infusion, usually for a new project or to buy assets, use a legal maneuver called a “capital call” to collect committed capital from the fund’s investors. But there are other considerations having to do with such a call’s usage. Let’s look at when a capital call should be used – and more.

Explain Capital Calls

When buying into a private equity fund, investors usually only turn over part of their contribution at the onset and put the balance in a low-risk account where it can make money until the fund “calls” for it. This arrangement works for the fund as well, since it doesn’t want to have a lot of money around that isn’t being invested or used to woo new investors with relatively low initial buy-ins.

Such calls are viewed as short-term loans that ensure the equity funds’ liquidity and continued growth. And because equity firms typically operate on a just-in-time basis, they must be able to secure capital … whenever. That’s not possible, by definition, with investor funding that’s already scheduled. So, capital calls are essential.

Note that the onus is on the investor to make sure, up front, that they are familiar with all the terms of their fund’s looming capital call, which will be spelled out in what’s called a limited partnership agreement.

What’s included in a Capital Call?

A capital call must include the percentage of the commitment that’s being demanded, the fund’s name, payment details, the due date, and a list of total commitments.

What Happens if the Investor Can’t Comply?

One challenge with capital calls is insufficient fund documentation; the fund can’t be 100 percent sure that the capital will be there when called for. And, at times, investors will default on their commitment, even after they’ve been given an opportunity to make things right. Such penalties can include:

  • Forfeiture. The investor’s commitment could be totally forfeited.
  • Conversion. If they can’t make the call, the investor’s interest could be changed to nonvoting.
  • Calling the commitment. A penal rate of interest will be applied if this happens.
  • Sale of interest. The investor may have to sell their interest to the fund or third parties at a discounted rate.
  • Withholding against future distributions. Unless and until the capital call is met, future income distributions will be affected. 

When Should a Capital Call Be Used?

Technically, a fund can issue a capital call whenever it wants. Therefore, investors should always be prepared. However, there are times when a fund should hold off on that call. That includes when it knows or suspects that the investor isn’t prepared to comply. After all, reputations are at stake all around, and the firm doesn’t want to unnecessarily strain relationships.

To skirt planning issues, investors typically get at least seven days’ notice before making the call, also known as a drawdown.

It’s never wise, by the way, for a fund to rely on capital calls for operational costs. That’s asking for trouble, especially if it isn’t certain the funds will be there.

So, when should a capital call be used? As we say, usually when project funds are needed — and even then, only when a deal is close – or to address unexpected and temporary market changes. Such calls are short-term loans that are secured against the investor’s capital commitment. This short-term borrowing makes it easier to manage the fund day to day and makes funding of the private equity firm easier.  

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