Streamlined capital calls

Streamlined capital calls

Author: The Carta Team
Read time:  3 minutes
Published date:  11 April 2022
Updates to Carta’s capital calls tool give GPs more precise and efficient ways to call capital.

Welcome to Capital Calls 2.0. Updates to Carta’s capital calls tool give GPs more precise and efficient ways to call capital.

Streamlined capital calls

Welcome to Capital Calls 2.0. Until now, Carta’s capital calls request tool only allowed GPs to call capital on a pro rata basis from all investors in the fund—regardless of their close date. This meant that investors who subscribed after the first capital call trailed earlier subscribers to the fund. To catch them up, GPs asked fund admins to initiate a capital call for those specific investors.

Image of capital calls tool

GPs can now use the redesigned tool to:

  • Make pro rata capital calls from their existing investor base

  • Call capital only from specific investors without emailing their fund administrator, reducing the odds of making a clerical error that could impact a relationship with an LP

With the redesigned capital calls tool, you’ll be able to view a list of investors whose commitments have changed since the last capital call, including new subscribers. For a pro rata capital call, the tool will automatically calculate the amounts to be called from each investor, bringing each LP to a level pro rata contribution.

How it works

There are now two ways you can request a capital call. You can start by navigating to the firm management page or to the Capital Calls tab in the fund page. Then, select the type of capital call you would like to request:

  • Pro rata capital calls is an improved version of our existing capital calls tool. With the redesigned tool, you’ll input a total dollar amount for the capital call, or the percentage of LP commitment you’d like to call. Then you’ll enter the capital call details, such as the required transfer date. Finally, you’ll review the details of the call before initiating it.

  • Subsequent close capital calls will list out new investors and those with changed commitments since the last capital call. Next to each, you’ll see an optional text box for your additional notes. After inputting the capital call details, you’ll have the opportunity to conduct a final review before initiating the call.

The new capital calls tool is available for all fund administration customers who are on the Carta general ledger.

What’s next?

We’ll be expanding the capital calls tool to handle more complex scenarios, like calling additional capital from new and existing investors in the fund. We also plan to embed PDF previews of capital call notices at the review step on the Carta platform. (Right now, we send these confirmations by email.) We’re also building a feature that will let you review and initiate a capital call without further approvals between you and your fund administrator.

More updates

Our product team also made updates to create a smoother closings experience, among other new upgrades to investor services. Want to see the new features in action? Reach out and request a demo.

DISCLOSURE: This communication is on behalf of eShares Inc., d/b/a Carta Inc. (“Carta”).  This communication is for informational purposes only, and contains general information only.  Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services.  This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests.  Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor.  This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. ©2022 eShares Inc., d/b/a Carta Inc. (“Carta”). All rights reserved. Reproduction prohibited.

The Carta Team
While we believe in assigning ownership at Carta, this blog post belongs to all of us.