Why faster capital calls in bear market - Private equity

CFA Level III
#1

Rookie question.

I get the rationale for slower pace of distribution in bear markets but why faster capital calls? Is it because private equity is looking at investment opportunity?

#2

At first glance, i thought it is an obvious one but your thought gives me pause

1/ My intuition says faster capital calls because all the risky projects bleed cash much faster during bad economy (e.g. less demands, less sales). Also cost of debt is higher in bad time, making capital calls the most affordable option.

2/ Iā€™m clearly biased here. Not all projects are poorly managed. They might have enough cash and the lack of attractive opportunities might result in fewer calls

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#3

Would you rather invest when prices are low, or when prices are high?

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