What’s new?

Carta’s new KYC AML Dashboard provides greater visibility and control of your investor KYC (Know Your Customer) checks. It allows you to easily track requests and keep on top of KYC progress with a visual summary and details for each LP. Here’s how it works:

1. Initiate and track progress 

• Invite LPs to complete KYC, including prospective LPs who are not on your Partners Dashboard, and standalone KYC checks outside of Fund Closings
• Remind investors to submit their KYC information and keep things moving
• Monitor status updates and key dates, including when KYC was last updated for an investor, and the results of daily watchlist screenings

2. Consolidate KYC tasks across entities

• Manage results for investors in multiple entities
• See investor KYC checks across jurisdictions in one place
• Ensure regulations are followed with data collection based on the entity’s country of domicile

3. Download results

• Export summary reports for an overview of investor KYC results across all entities
• Export Customer Due Diligence (CDD) reports for individual investor KYC results including risk scores that explain how a verdict was reached

What’s important about this change?

Traditional KYC providers and methods offer GPs very limited visibility into the process. GPs often don’t know how a KYC check is progressing or when it will be complete, and aren’t told why a certain verdict was reached. The KYC AML Dashboard transforms the experience of managing KYC for a fund, whether you’re onboarding LPs for the first-time or running periodic reviews. 

How does it work?

To learn more, browse our support articles about Carta’s KYC services or read our guide to KYC compliance. 

See the product in action in this interactive demo:

N.B. Carta’s KYC solution supports, but does not constitute, an AML program.

What’s new?

Spotlight is a new section on the Carta fund admin dashboard. It’s designed to sort and surface your most important workflows, starting with capital calls and distributions.

What’s important about this change?

Before Spotlight, it wasn’t always clear what needed your immediate attention upon logging into Carta, and key updates such as the status of active capital calls were not shown on the dashboard.

Now, your urgent work is surfaced on Spotlight as soon as you log in. Spotlight also consolidates activity across multiple entities, helping you save time and stay aware of priority tasks. 

How does it work?

If there is relevant activity on your account, it will appear in the Spotlight section of your dashboard. Each item is displayed as a clickable tile. Simply click on a tile to go directly to the page you need.

Spotlight currently displays:

• Capital call approvals that need your review.
• Updates on active workflows as they progress such as capital calls and distributions.

Tactyc now integrates directly with Carta Data Collection, allowing you to automatically sync portfolio company financials and KPIs from into your Tactyc KPI Manager module. This streamlines data collection, improves data quality, and lets you immediately leverage Tactyc’s analytics, modeling, and reporting capabilities.

Why is this valuable:

The end-to-end flow between Carta and Tactyc simplifies the recurring process of requesting and maintaining portfolio company financials. Our team partners with you to gather and organize everything using a streamlined workflow in Carta, then keeps it in sync with Tactyc.

This enables you to:

• Rely on financials and KPIs in Carta as the source of truth; updates automatically sync in Tactyc.
• Analyze metrics over time by company and by KPI with flexible charts and visualizations.
• Build custom formulas, compute valuation multiples, and uncover deeper insights.
• Customize and deliver on tear sheets and reports focused on financials and KPIs.

Who is this available for:

This integration is available for all joint Carta Data Collection <> Tactyc customers.

Reach out to your Tactyc account manager or tactyc@carta.com for any questions.

How does it work:

How do I learn more?

Carta Support Article: Tactyc's Financials Integration with Carta.

Watch the Q3 2025: What's New, What's Next Webinar recording

What's new?

To improve reporting related to ISO disqualification dates for holders of ISO option grants that were terminated, we have enhanced the logic used in Carta’s equity reporting suite.

Now an ISO grant will only show as disqualified in the reports if it reaches the statutory 3 month period following termination (or, in the case of a termination due to permanent and total disability or death, one year after the employee’s termination date). Users that require that an ISO grant disqualifies before these dates can enter a manual disqualification date via the modify workflow.

Carta's exercise flow already includes the disqualification logic above. This update affects only reporting. 

Why are we changing this?

Previously, there was a mismatch between the disqualification logic in Carta’s exercise flows and in the security modal versus in certain Carta reports in regards to the disqualification status for terminated ISOs. For example, if a stakeholder with an ISO grant with a PTEP of 1 year was terminated by the company, the grant would be shown as ISO disqualified before the statutory 3 months had passed in certain Carta reports. However, if the holder exercised that grant through Carta’s exercise flow within the initial 3 months post termination, the grant type, the tax treatment of the grant displayed to the holder, and the resulting records would reflect the exercise of an ISO in the Exercised and Settled Report.

With this update, for the example above, up until the initial 3 months pass, the grant will not reflect ISO disqualification in Carta reports. It will reflect an ISO disqualification date in Carta reports only once the 3 months statutory period is over.

Where can I learn more?

For more information on Carta's equity reporting suite, refer to our dedicated support article.

We know navigating complex ASC 718 or IFRS reports is critical. 

In order to help make that process seamless, we’ve added new ways to connect with our experts directly from Carta’s Financial Reporting tool.

There are three ways to get support:

• Message Us: This is the recommended method for any question. This new form allows users to categorize their questions, which automatically routes the case to the correct team and improves response time. The form also includes the ability to add attachments, which can be used to send expense reports to Carta's Support Team
• Schedule a Video Call: Customers can now easily book a meeting with an analyst, which is recommended for complex topics like first-time setup or understanding report calculations.
• Online AI Support: For general questions, customers can still access 24/7 online AI support.

This support article offers the steps on how to find the new contact us modal for Financial Reporting.

We've made a huge upgrade to our LLC product to support Look-through Ownership reporting, eliminating the complexity of tracking multi-entity ownership structures. 

What's new?

Look-through Ownership allows you to easily look through intermediate entities on an LLC multi-entity cap table to understand a holder's true ownership in the operating company. 

For supported customers, you’ll find a new “Look-through Ownership” option in the cap table view dropdown. Selecting this option will display a completely new view into the owning entity and holding entity relationships across complex legal structures.

• Complete Look-Through Visibility: See true ownership percentages that cut through intermediate entities, such as holdcos, to clearly understand the parent holders of the operating company—giving you precise exposure calculations for strategic decisions.
• Interactive Ownership Mapping: Click through ownership percentages to explore the complete ownership chain with a new UI that highlights all ownership layers and directly maps owning entity to holding entity relationships.
• True-to-Legal Structure Representation: Maintain the actual legal structure of your portfolio company while gaining blended ownership insights, supporting accurate compliance reporting for KYC, taxes, and regulatory requirements.
• Automated Exposure Calculations: Eliminate manual Excel consolidation and reduce errors with automated ownership calculations that update in real-time as your structure changes.

What's important about this change?

While multi-entity structures create various efficiencies for portfolio companies and their investors, they also create reporting challenges. Previously, calculating ownership across a web of relationships required exporting data from multiple sources and manually combining it in Excel, an error-prone, time consuming approach that easily becomes unwieldy as structures grow more complex.

On Carta, look-through ownership calculations are now automatically generated within your cap table view, giving CFOs and investment teams immediate access to accurate exposure data for exit decisions, LP requests, and regulatory compliance.

How does it work?

• Contact your dedicated Account Director to schedule a call to enable Look-through Ownership for eligible portfolio companies
• Navigate to your LLC cap table and locate the new "Look-through Ownership" option in the cap table view dropdown menu
• Click on any ownership percentage to explore the full entity chain and ownership layers

With H.R. 1, the “One Big Beautiful Bill Act” (OBBB) now in effect, we’ve updated Carta’s Qualified Small Business Stock (QSBS) Attestation to help you and your shareholders track eligibility and take full advantage of the new benefits.

What’s new?

Support for shorter holding periods: for shares issued on or after July 4, 2025, Carta now tracks eligibility for a partial QSBS exclusion after three years (50%) and four years (75%), with full 100% exclusion available after 5 years.

Support for the new $75M asset cap: Carta automatically checks if newly issued shares qualify under the updated $75M aggregate gross asset limit—so you can confidently verify QSBS eligibility at the time of grant.

Expanded individual gain exclusion: Shareholder letters and eligibility summaries now reflect the increased $15M per-person gain exclusion, unlocking even greater potential tax savings.

Updated dashboard indicators: Carta dashboards and reports now show eligibility based on new QSBS rules and issuance windows. This makes it easier for companies and shareholders to understand their status at a glance.

Why is this valuable?

The new QSBS rules offer significant opportunities for tax savings—but only if companies can accurately track and prove eligibility. Carta’s updates simplify this process. By automating complex eligibility checks and updating shareholder documentation in real time, companies can:

• Maximize potential QSBS tax exclusions across new and existing grants
• Confidently communicate eligibility status to founders, employees, and investors
• Maintain audit-ready records with less manual effort

These upgrades ensure every eligible shareholder is in a position to receive the full benefits of the new law, with built-in transparency and peace of mind.

How do I access the updated attestation?

No action needed, these updates have already been applied to all active QSBS Attestations and portfolios holding QSBS-eligible shares. If you have questions or would like a walkthrough, reach out to your Customer Success team or visit our Help Center.

Anything else to know?

Our team is closely monitoring policy changes and will proactively revisit your company’s QSBS analysis to help you unlock new shareholder opportunities and ensure your audit records remain up to date.

What’s new?

All equity awards are now tracked via the Equity awards exceeds equity plan size health check.

When is the health check flagged?

The health check is triggered whenever an issuer has more shares issued from their equity plan than shares available at any given date. Each row in the health check indicates the dates when one or more equity award was issued and overdrew the equity plan.

To check which awards are triggering the health check navigate to Essentials > Run Reports, search for the Equity Plan Report, and review awards issued on the overdraw dates to identify contributing securities.

How can I fix the health check?

There are two ways to fix the health check:

1. Modify the security that triggered the health check to be so its issue date matches a time when the company has enough available shares in the equity plan.

2. Amend your equity plan to increase the number of shares available at the overdrawn dates. 

What’s new?

Partner-level ILPA notices are now available on Carta, making ILPA reporting faster, easier, and more reliable. With this update, you can generate, review, and distribute ILPA notices directly within Carta, at the same time as standard capital call and distribution notices.

What’s important about this change?

For firms, preparing ILPA-compliant notices for LPs is often an additional task alongside standard notices. It can require multiple software tools and manual efforts to book activity and prepare the outputs, adding time and complexity to a firm’s reporting workload.

On Carta, ILPA notices are now automatically generated and distributed at the same time as standard notices, streamlining the process for firms and ensuring all LPs receive them simultaneously.

How does it work?

1. Ask your Carta team to switch on ILPA reporting for your fund
2. Request a capital call or distribution following the standard workflow
3. Review the ILPA-formatted notices in the app alongside the standard notices
4. Once approved, the appropriate notices are distributed to your LPs

What’s new?

We have made two improvements to paybands to make setting and updating bands easier:

1. Reset bands - you can now reset paybands based on your current Compensation Plan or, after updating your Plan, reset them based on your updated compensation philosophy
2. Automatic calculations for minimums and maximums - when updating payband targets, the minimum and maximum of the band that you are editing will automatically update based on your paybands settings

How do I reset paybands?

1. Navigate to the Paybands page
2. In the upper right corner, click the “Reset paybands” button

After clicking Reset paybands you will be asked to confirm your choice. Once you confirm, all of your paybands will be reset based on your current Compensation Plan. 

Note that this cannot be undone once you confirm.

Questions?

If you have any questions or feedback about Custom Paybands, please reach out to your Customer Success Manager.