SD-01.10 — Commitment Pacing & Deployment Planning

Business Domain: BD-01 Investment Strategy & Allocation (Front office) · Applies: PRIV

Purpose

Decides the rate of capital commitment to illiquid strategies, so that target allocations to private markets are reached and held through the J-curve. Commitment pacing is the decision — how much new capital to commit, to which strategies and vintages, and when. It consumes the cash-flow forecast produced by SD-09.7 Private-Markets Cash-Flow Forecasting; it does not duplicate it. SD-09.7 is the forecasting engine — it projects what the existing portfolio of fund investments will call and distribute; SD-01.10 is the decision built on that forecast — it decides what new commitments to layer on top. Keeping the engine and the decision in separate Service Domains follows how institutional private-markets teams are organised and how the pacing literature itself draws the line.

Service Operations

Set the commitment budget — decide how much new capital to commit to illiquid strategies in the period.
Plan vintage-year pacing — spread commitments across vintage years so the portfolio is not concentrated in a single cohort.
Design deployment glidepaths — the path by which a target illiquid allocation is reached and then held.
Model over-commitment — set the over-commitment ratio so undrawn commitments keep the allocation at target as earlier funds wind down.
Test the pacing plan against the cash-flow forecast — run the candidate plan against the SD-09.7 forecast and the SD-01.11 liquidity tiers, including the over-commitment stress scenarios.
Allocate the commitment budget across strategy and vintage — translate the budget into per-strategy and per-vintage commitment ranges.
Govern and re-pace — periodically revise the pacing plan as actual calls and distributions diverge from forecast.

Inputs and outputs

Inputs: the private-markets target from the strategic allocation (SD-01.4) or the Total Portfolio Approach (SD-01.6); the SD-09.7 cash-flow forecast; the liquidity tiers (SD-01.11); the current commitment and undrawn balances.
Outputs: the commitment budget and the per-strategy, per-vintage commitment ranges — consumed by BD-03 Manager & Fund Investment and BD-04 Direct & Co-Investment (which act on the budget) and by BD-11 (which funds the calls).

Entities

Consumes: Fund Investment (PM-09) for the commitment and undrawn balance, LP Commitment (PM-06), Capital Call (PM-07), Distribution (PM-08), Portfolio / Mandate (E-03); the SD-01.11 liquidity tiers; the SD-01.4 private-markets target from the strategic allocation; the SD-01.6 Total Portfolio Approach; the SD-09.7 cash-flow forecast.
Owns: E-29 Allocation Plan for the plan_type = commitment_pacing partition — the versioned commitment / deployment pacing plan, so a deployment decision traces to the pacing plan in force when it was taken. E-29 is key-partitioned and co-equal: SD-01.10 owns the commitment_pacing partition, SD-01.4 Strategic Asset Allocation the strategic partition, SD-01.6 Total Portfolio Approach the reference_portfolio partition; it is one shared plan master.

Standards

No external standard governs commitment pacing. The Takahashi-Alexander model is the canonical public forecasting methodology, applied by SD-09.7; pacing is the decision built on that forecast. ILPA reporting templates standardise the call and distribution history the forecast is built from.

Open extensions

The boundary with SD-09.7 — the forecasting engine versus the pacing decision — is recorded in the SD-09.7 file and the BD-09 README.
The boundary with SD-05.10 Manager Structure — SD-01.10 owns the timing and amount of commitment deployment over the years; SD-05.10 owns the diversification design of the manager and fund roster those commitments fill.
The pacing-schedule grammar on E-29 — the typed structure of the period-by-period commitment / deployment schedule.