What it is
Many international fund structures, such as Variable Capital Companies (VCCs), Segregated Portfolio Companies (SPCs), and Australian unit trusts, record each LP's ownership as a number of units rather than by commitment alone. Carta tracks that ownership alongside the rest of your fund's records.
Why it matters
GPs and LPs can see each LP's holdings in units across their portfolio and reporting views, including partner capital account statements (PCAPs), which show the unit balance and the units issued and redeemed in the period. This is also necessary in many jurisdictions, such as Singapore and Australia, to submit regulatory filings stating units held by LPs.
How it works
How units are issued depends on the fund's configuration, and redemptions reduce an LP's units. Unit history appears in the partner ledger, and you can export a register of unit allotments, the record of how many units each LP was allotted.
