A first close is the first time a fund accepts commitments and gets going, even though it keeps raising toward its target.
What the film says
In private equity, a fund can start buying before it finishes raising. That starts with the first close. Say a fund targets two billion. It takes in eight hundred million. Now it can start investing. For months, it keeps raising from new investors. Then it stops, at the final close. So why do investors care? It's the first sign a fund will exist. And it sets the date later investors are usually measured from. The first close is the start, not the finish.
In the glossary: First close
A simple example with round numbers, not advice. Terms vary by fund.
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