Instant KYC for LPs Completing Subscription Documents

Limited Partners completing subscription documents on Carta can now be KYC’ed instantly.


What’s New

If your fund leverages Carta’s KYC/AML service and you have Limited Partners (LPs) completing subscription documents in Carta, these LPs are now instantly KYC’ed on the platform. 

Carta’s new instant KYC feature is made possible by Carta integrations with identity and verification databases like LexisNexis, Ekata, Socure, and more.


Limitations

  • For this first release, only individual (as opposed to entity) LPs are KYC’ed. Future releases will support KYC for entity (non-individual) LPs as well. This includes KYC for the LP entity, LP control person, and LP beneficial owners
  • For this first release, only US-based LPs are supported. Future releases will extend support to non-US LPs


How it Works

  1. As an LP completes their subscription documents, individual LPs (for funds that avail of Carta’s KYC/AML service), will now see a dedicated Know Your Customer section. Here, LPs can input the additionally required information for KYC -


  2. Once subscription documents are signed by the LP, the LP is instantly KYC’ed. If the LP passes KYC, this is immediately reflected in Carta and General Partners are notified to countersign -


    Timing: Rolled out to Limited Partners on July 1, 2021


    Audience: Limited Partners, General Partners

Support Partially Realized Investments

This past week we released added granularity to the Investments, Overview and Firm Overview Tracking bars for investments. The in-app tracking bars will now show
  • Total investment count
  • Fully realized investment count
  • Partially realized investment count
  • Unrealized investment count


Timing: Rolled out to funds using our Fund Administration services on May 21, 2021.

Audience: General Partners, CFOs, Investment teams.

Partners' capital status included in exports

This past week we've added partners' capital status to the partners export. We know keeping tracking this is important for funds and can be a pain to do manually. Our Partners' exports on Carta now included the following information: 
  • Called capital
  • Uncalled capital
  • Percent of capital called
  • Prepaid balance
  • Outstanding balance

These updates apply to both the fund level and 'All Partners' export. We've added the following columns to the partners export.

Where to find: Log in to Carta > Select a fund within your investment firm > Navigate to the Partners tab > Select 'Export partners'


Timing: Rolled out to funds using our Fund Administration services on April 30, 2021.

Audience: General Partners, CFOs, Investment teams.

Fund performance metrics on Carta

We know how important Carta is in helping fund managers manage and track the performance of their funds. This month we've add a host of new features to help fund managers get and understand the metrics they need about their funds. 

Here's whats new:

1. New fund performance page

  • New table view with an option to 'switch to chart view'
  • Added metrics definitions and explainer tool tips
  • Period selector to allow you to easily select ‘end of’ last year, quarter, or month.
  • Traceback for very metric so you can to view the underlying source data
  • New API using Carta General Ledger for all contributions and distributions data.

Example of new Fund Performance page:

Example of traceback of TVPI metric as of 12/31/2020:


2. New Excel export:

We've added a new export on the page that includes all the metrics and details about the underlying data.


3. Support for parallel entities:

We've also added support for parallel entities (or fund families). You will be able to see all the above features at a consolidated level.


Where to find: Log in to Carta > Select a fund within your investment firm > Select the Fund performance tab

Timing: Rolled out to funds using our Fund Administration services on April 16, 2021.

Audience: General Partners, CFOs, Investment teams, Limited Partners.

Deal Documents on Carta

Fund managers are flooded with troves of documents for every investment their fund's make. These documents house vital terms that need to be quickly referenced during deal negotiations and potential exits to answer questions like- Who has blocking rights? Keeping these documents organized and easily accessible is also key to running a stress free audit that institutional LPs can have confidence in. 

What’s New 

For our early access group, funds using the Carta General Ledger can now see their deal documents directly on their realtime SOI. For each portfolio company, easily access documents by asset including both new investments and the supporting documentation for subsequent valuation updates. 

How it works

1. Work with the Carta team to capture all deal documents

2. Click through any asset on the realtime SOI

3. See all associated deal documents and valuation support

4. View or download the actual documents to verify any needed terms. 

5. Have your Carta Fund Administrator grant your auditor access to the Carta General Ledger so they can access any documentation/support the same way.


Stay tuned as we roll this out to a bigger audience and introduce more tools to make keeping track of deal terms across a portfolio even easier. Reach out to your account manager if you would like to be considered for early access. 


Timing: Rolled out to Carta Fund Administration early access clients April 2021

Audience: CFO'sFund Managers, AuditorsGeneral Partners


Certificates of exercised option grants are now generated and issued after funds are confirmed

For private companies, Carta will now generate the resulting certificate after the option exercise funds are sent to the company and have succeeded (may take 1-2 business days).

Who this affects:


Private companies: Admins and shareholders

What was the problem:

Previously, resulting certificates were generated after Carta confirmed the funds from stakeholder, but before the funds were sent to the Company. This created reconciliation issues for the company as they could not verify if funds were sent to the company before issuing the certificate.

What’s new: 


We have now updated the flow to generate the certificate after funds are sent to the company, which may take 1-2 business days for the company to receive the funds.


This will help Company admins to reconcile exercise funds received during the exercise workflow.

Automated partner matching for Schedule K-1 uploads

Sending K-1s to the right Limited Partners can be a manual, error-prone process. The new K-1 uploader helps ensure that every tax document goes to the right LP. When you upload your K-1s into Carta, our system will automatically match or suggest matches for LPs based upon name and tax ID.

Who this affects 

LP Portal customers, Fund Admin customers

What’s new

We have released a new tool for LP Portal customers to easily upload Schedule K-1 tax documents. This is the same tool used by Carta’s internal fund administrators.

The tool scans each K-1 to look for partner names and tax IDs, and compares them to the names and tax IDs we have on file.

If a K-1 matches with exactly one partner, the tool will automatically assign it to that partner.

If the tool is unable to definitively assign a document to a partner, it will suggest potential matches for user review.

To access the K-1 uploader, visit the Partners tab. Under Documents, select Upload documents and choose Schedule K-1.


Timing: This feature was released March 3, 2021

Pre-filling Subscription Documents for Existing LPs

If you are an LP, you’ve felt the pain of filling out subscription documents. You go through the same long investor questionnaire with the same questions for every fund investment you make. With Carta subscription documents, now you don’t have to. 

What’s New 

Limited Partners who have already completed a subscription document on Carta can now re-use their information for future investments. They can add their subscription information in just a few clicks.


How it works

1. Limited Partners select the portfolio for the entity they are investing through

2. The form is pre-filled with information from their previous subscription. Any questions that are specific to this investment are highlighted for the Limited Partner to answer.

3. Limited partners review and confirm their information is correct.


Check out our Q1 product webinar recap blog post to see how simple the closings process will be.


Timing: Rolled out to Limited Partners on February 24, 2021

Audience: Limited Partners, General Partners

Biometrics Login on Mobile

To provide safe and easy access to our mobile users, we are introducing biometrics login on the Carta iOS and Android apps.

This update will make it easy for users to log in to the Carta app through the use of Touch ID or Face ID on supported iOS devices, and Facial or Fingerprint recognition on supported Android devices.


Note: Only biometrics login for a single account is supported at this time.

Fund Administration Experience on Mobile

Carta Fund Administration clients can now access both company investments and fund overview information on the Carta iOS and Android apps. This will help investors get information on the go.

Who this affects

Fund administration clients 

What’s new

Fund administration clients can now view both company investments and an overview of their fund entities on Carta.  

  • General partners can view and search through the company investments
  • The new fund overview page provides a summary into the fund investments and also the top five investments, which can be filtered based on Gross IRR, Cost, Value, Gain/Loss, and Multiple.


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