What does the term "money raised that remains uncalled or uninvested" imply in private capital?

The term "money raised that remains uncalled or uninvested" refers to capital that private equity firms have successfully secured from investors but have not yet deployed into investments. The correct interpretation of this situation is that it signifies a capital overhang.

In private capital, a capital overhang occurs when fund managers have capital that has been committed by investors but is not yet allocated to specific investment opportunities. This situation can arise during periods where there may be fewer attractive investment opportunities than anticipated, or when the market conditions lead to a hesitancy in deploying funds.

Having a capital overhang can have various implications for both fund managers and investors. For fund managers, while it suggests successful fundraising, it also means that they are under pressure to find viable investments to maximize returns. For investors, it can indicate that while they have committed capital, the lack of investment activity could affect the performance of their investment over time.

In this context, the other options do not fully capture the essence of uncalled capital. For instance, while it may reflect successful fundraising, this aspect alone does not encompass the broader implications of a capital overhang. Increased investment opportunities are not inherently indicated by uncalled capital; rather, it often denotes the opposite if there are limited