Letters of Capital Commitment

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July 18, 2021

by a searcher from Emory University - Goizueta Business School in Atlanta, GA, USA

I am starting a self-funded search and have lined up a few investors who have worked with me in the past. Does anyone have a template for a letter from investors that can be used to demonstrate capital commitments prior to having a deal in hand? I would like to share this with brokers and lenders as I start to develop deal flow. Thank you!

Ben

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Reply by a searcher
from California State Polytechnic University in Los Angeles, CA, USA
Hi Ben. Your post reminds me of a comment brought up under this topic: https://www.searchfunder.com/post/independent-sponsors-how-are-you-responding-to-probing-questions-about-capital-raising

A fellow Searchfunder community member (^redacted‌) put together a template for a letter of support to obtain from investors. That possibly could be of interest to you.
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Reply by a searcher
from Georgetown University in Minneapolis, MN, USA
Thanks for asking this question. It's one I have been curious about as well, as the first broker I reached out to (just starting my search), seemed skeptical. I've gotten a range of answers from different searchers. Some got a Letter of Capital Commitment and some didn't. But those that had the letter never ended up having to use it. Offering it seemed to be enough in their experience.
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