Software for the Private Equity Fund CFO

Software for the Private Equity Fund CFO

Author: Henry Ward
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Read time:  2 minutes
Published date:  October 4, 2024
Why do firms that invest in the best companies still run on spreadsheets and PDFs?

Chief financial officers (CFOs) at public corporations rely on advanced financial software systems to manage critical financial operations. Mid-market CFOs also have comprehensive financial software options. Even small startup CFOs have off-the-shelf accounting software to ensure their finance team has the workflows, insights, and automations to run finance effectively.

Yet private equity CFOs still use spreadsheets and PDFs, or at best, disconnected tech solutions. Why do firms that invest in the best companies still run on these outdated, disparate tools?

Because no one has given them a better option. Until now. 

A purpose-built platform for private equity

By digitizing stock certificates and storing them in the cloud, Carta made it easy for founders and CFOs to issue and track ownership of their companies. Carta software displaced spreadsheets and set the standard for cap table management.

Now, we’re doing the same for private equity CFOs with the first end-to-end platform purpose-built for them. The Carta platform takes CFOs out of spreadsheets and into software. It connects cap table management, portfolio management, fund accounting, investor management, and an investor portal into one seamless platform. It gives them unprecedented automation, transparency, control, and insights.

Bespoke software for complex funds

Private equity fund structures are complex, as are the assets they invest in. Carta’s software allows CFOs to model their fund structure, from portfolio companies to investment entities to co-investors. Our waterfall engine uses a domain-specific language to build everything from the simplest pro-rata waterfalls to the most complicated ones with performance conditions, dividend structures, preferences, and more.

A through-line from cap table to fund waterfall

By connecting portfolio company data with underlying fund accounting data, Carta built the first networked accounting product. A change to the cap table will automatically update in the fund’s general ledger. A portfolio-level waterfall can flow through the entire private equity fund structure to calculate the impact of a distribution to an individual partner. This connectivity unlocks insights, giving CFOs the ability to make higher quality decisions about their fund operations.

The foundation of the platform is an event-based accounting solution. CFOs, finance teams, and fund administrators can execute fund events like capital calls, distributions, and new investments through Carta workflows. Automatic updates to the general ledger provides real-time metrics and reporting. Finally, all numbers in the Carta platform are traceable to underlying journal entries, originating events and supporting documentation. This gives CFOs and auditors unparalleled visibility over their operations and underlying transactions. Faster audits lead to faster K-1s. Faster K-1s lead to happier limited partners.

Best-in-class service

We bring together best-in-class software and high-quality human service to create the best experience for customers. Carta is home to over 400 expert fund accountants passionate about serving the private capital ecosystem. We offer services tailored to the needs of CFOs, from tax to treasury to audit support. Or fund CFOs can join the 2,500 funds that use Carta as their full-service fund administrator.

With Carta, management, deal teams, finance, and operating teams are all working off the same platform, with the same source of truth. 

With Carta, private equity CFOs have visibility and control.

With Carta, the office of the private equity fund CFO finally has the software they deserve.

Run your fund on Carta
To learn about how Carta can help your fund or firm, book a call with our experts.
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Henry Ward
Author: Henry Ward
Henry Ward is the CEO and co-founder of Carta.