A more predictable way to fund private market commitments
Croton lets investors fund eligible private market commitments on a regular schedule, with defined liquidity support when capital calls arrive ahead of it.
Four steps from commitment to call
Select a step to see which money moves at that point.
You choose which unfunded commitments to cover. You need not include every fund, and each commitment is reviewed for eligibility before it is enrolled.
You set a regular monthly or quarterly contribution and, separately, a maximum advance: the most Croton will have outstanding to you at any one time. The two are different numbers.
Capital call notices for your enrolled funds come to Croton as well as to you. Croton checks each call and instructs the custodian to pay it from your account, which remains yours and is kept separate from other clients’ accounts.
Your accumulated contributions meet each call first. If a call arrives before enough has built up, Croton advances the difference within your limit, and later contributions repay it. Anything Croton is not obliged to fund remains yours to pay.
- Covered commitments
- $1,000,000
- Contribution
- $62,500
- a quarter, for four years
- Maximum advance
- $300,000
- set separately
A worked example
$1,000,000 of covered commitments, sixteen quarterly contributions of $62,500 and a $300,000 maximum advance. The only thing that changes between the three situations is when the funds call capital.
From quarter 3 the calls run ahead of your contributions. Croton advances the shortfall, and the amount outstanding peaks at $237,500 in quarter 9, within the $300,000 limit. Your later contributions repay it in full by the end of the period.
- Largest balance in your account
- $95,000
- Largest Croton advance
- $237,500
- limit $300,000
- Advances repaid
- $237,500
- Paid by you, beyond the limit
- $0
Point at a quarter to see how its call was paid.
Quarter by quarter: what paid each call, and where each payment went
| Quarter | Your payment | Capital called | Covered by your payment | From saved balance | Advanced by Croton | Paid by you directly | Repaid to Croton | Saved for later | Balance at quarter end | Advance outstanding |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $62,500 | $30,000 | $30,000 | – | – | – | – | $32,500 | $32,500 | – |
| 2 | $62,500 | $90,000 | $62,500 | $27,500 | – | – | – | – | $5,000 | – |
| 3 | $62,500 | $85,000 | $62,500 | $5,000 | $17,500 | – | – | – | – | $17,500 |
| 4 | $62,500 | $95,000 | $62,500 | – | $32,500 | – | – | – | – | $50,000 |
| 5 | $62,500 | $110,000 | $62,500 | – | $47,500 | – | – | – | – | $97,500 |
| 6 | $62,500 | $90,000 | $62,500 | – | $27,500 | – | – | – | – | $125,000 |
| 7 | $62,500 | $70,000 | $62,500 | – | $7,500 | – | – | – | – | $132,500 |
| 8 | $62,500 | $155,000 | $62,500 | – | $92,500 | – | – | – | – | $225,000 |
| 9 | $62,500 | $75,000 | $62,500 | – | $12,500 | – | – | – | – | $237,500 |
| 10 | $62,500 | $50,000 | $50,000 | – | – | – | $12,500 | – | – | $225,000 |
| 11 | $62,500 | $30,000 | $30,000 | – | – | – | $32,500 | – | – | $192,500 |
| 12 | $62,500 | $40,000 | $40,000 | – | – | – | $22,500 | – | – | $170,000 |
| 13 | $62,500 | $30,000 | $30,000 | – | – | – | $32,500 | – | – | $137,500 |
| 14 | $62,500 | $25,000 | $25,000 | – | – | – | $37,500 | – | – | $100,000 |
| 15 | $62,500 | $15,000 | $15,000 | – | – | – | $47,500 | – | – | $52,500 |
| 16 | $62,500 | $10,000 | $10,000 | – | – | – | $52,500 | – | – | – |
Illustrative. Call timing is hypothetical; contributions are shown before the normalization fee and any financing charge on advances. Contributions are paid at the start of each quarter and calls during it. The figures come from the same model as the calculator below and on the homepage.
Try your own numbers
The same model, with every assumption open: the commitments enrolled, the schedule, the timing of calls and the advance limit.
- Scheduled contribution
- $62,500
- a quarter, before fees
- Largest Croton advance
- $237,500
- quarter 9; limit $300K
- Largest balance in your account
- $95,000
- waiting for calls
- Beyond the limit, paid by you
- $0
- all calls within the limit
Point at a quarter to see how its call was paid.
The figures: at the selected quarter, over the full period, and quarter by quarter
Month 24, quarter 8
- Capital called to date
- $725,000
- Contributions to date
- $500,000
- Croton advance outstanding
- $225,000
- Held in your account
- $0
- Paid directly by you to date
- $0
Where your payments went, over the full period
- Your scheduled payments
- $1,000,000
- Paid calls in the quarter they were made
- $730,000
- Repaid Croton’s advances
- $237,500
- Saved, then used for later calls
- $32,500
- Left in your account at the end
- $0
- Advanced by Croton, in total
- $237,500
| Quarter | Your payment | Capital called | Covered by your payment | From saved balance | Advanced by Croton | Paid by you directly | Repaid to Croton | Saved for later | Balance at quarter end | Advance outstanding |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $62,500 | $30,000 | $30,000 | – | – | – | – | $32,500 | $32,500 | – |
| 2 | $62,500 | $90,000 | $62,500 | $27,500 | – | – | – | – | $5,000 | – |
| 3 | $62,500 | $85,000 | $62,500 | $5,000 | $17,500 | – | – | – | – | $17,500 |
| 4 | $62,500 | $95,000 | $62,500 | – | $32,500 | – | – | – | – | $50,000 |
| 5 | $62,500 | $110,000 | $62,500 | – | $47,500 | – | – | – | – | $97,500 |
| 6 | $62,500 | $90,000 | $62,500 | – | $27,500 | – | – | – | – | $125,000 |
| 7 | $62,500 | $70,000 | $62,500 | – | $7,500 | – | – | – | – | $132,500 |
| 8 | $62,500 | $155,000 | $62,500 | – | $92,500 | – | – | – | – | $225,000 |
| 9 | $62,500 | $75,000 | $62,500 | – | $12,500 | – | – | – | – | $237,500 |
| 10 | $62,500 | $50,000 | $50,000 | – | – | – | $12,500 | – | – | $225,000 |
| 11 | $62,500 | $30,000 | $30,000 | – | – | – | $32,500 | – | – | $192,500 |
| 12 | $62,500 | $40,000 | $40,000 | – | – | – | $22,500 | – | – | $170,000 |
| 13 | $62,500 | $30,000 | $30,000 | – | – | – | $32,500 | – | – | $137,500 |
| 14 | $62,500 | $25,000 | $25,000 | – | – | – | $37,500 | – | – | $100,000 |
| 15 | $62,500 | $15,000 | $15,000 | – | – | – | $47,500 | – | – | $52,500 |
| 16 | $62,500 | $10,000 | $10,000 | – | – | – | $52,500 | – | – | – |
Illustrative and hypothetical. Call timing scenarios are examples, not forecasts or data from any fund. Contributions are shown before Croton’s annual normalization fee and the financing charge on outstanding advances. Calls are modelled once a quarter; contributions are paid at the start of each period. Coverage, eligibility, limits and terms are subject to underwriting and documentation.
Your contributions remain yours
Your payments go to an account in your name, not to Croton. Croton’s role is to direct payments from it to your funds, and to be repaid from it when it has advanced you money.
- Ownership
- Your contributions are held in a segregated account at an independent custodian, and you remain the beneficial owner of the balance.
- Use
- Croton is authorized to instruct payment of your eligible capital calls and the repayment of any advance it has made to you. Your balance cannot be used for another client’s calls without your separate, express authorization.
- Withdrawals
- Balances committed to the arrangement cannot be freely withdrawn during the term. What is left at the end is reconciled with any calls, advances and charges.
- Protection
- The structure keeps your balance apart from Croton’s own assets and creditors. The legal protections that apply are set out in your account documentation.
- Investment
- How the balance is invested is not part of the arrangement.
Making more capital available for investment
An investor who cannot predict calls tends to hold enough to meet a severe quarter. With a fixed schedule and a defined advance limit, the investor needs liquidity mainly for known payments on known dates, and may choose to hold less.
Whether that is worthwhile depends on what the released capital earns, which is the investor’s decision and risk, set against Croton’s fees and any financing charges.
Liquidity held against $100 million of covered commitments
Without Croton
Held for a severe quarter
$20.0M
With Croton
Held to meet scheduled contributions
$7.5M
Above what the reserve itself would earn. An assumption for you to set, not a forecast.
- Additional return on $12.5M, a year
- $625K
- Normalization fee, 0.40% of covered commitments
- −$400K
- Financing charges on advancesCroton’s funding cost plus a spread, while advances are outstanding
- Varies
- Before financing charges
- $225K
Illustrative arithmetic, not a projection. Reserve needs differ by investor; excludes financing charges, taxes and transaction costs. Released capital takes on the risks of whatever it is invested in, and no return or saving is assured.
Explore Croton for your commitments
We’re speaking with private market investors, family offices and advisors interested in a more predictable approach to capital call funding.