A capital call (also known as a draw down or a capital commitment)[1] is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investor.
The capital call is the act of actually transferring the promised funds to the investment target.
When they are ready to buy real estate, the fund managers issue a capital call, requiring investors who have committed money to the fund to transfer that money over.
The financing of the real estate purchase is realized through borrowing from banks.
When the fund has reached a certain level of return, capital calls are issued and the borrowing is paid off.