Construct pointwise limits in a functor category. For , choose at each object a categorical limit of , with projections . For , the family is compatible; define uniquely byThe universal property gives and , since those equalities hold after every projection. Thus is a functor, and each is a natural transformation.
For any categorical cone , the pointwise categorical limits give unique maps . To check naturality, compose and with every ; both become . The projections distinguish arrows into their categorical limit, so the two maps agree. Componentwise uniqueness gives uniqueness of the natural transformation . This proves that really is the required categorical limit, rather than merely a family of objectwise candidates.
A specified categorical limit categorical cone in fixes these objectwise vertices and projections. The displayed equation forces every arrow , and the argument forces every categorical cone factorization. Hence the forgetful functor uniquely lifts that categorical cone and is a limit-creating functor. The construction only takes small categorical limits in ; it does not require to be small. As usual, the functor categories are understood in a universe where their collections of transformations are meaningful.
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