Private Equity

This is GP carry tracking for private equity, part of fund administration in Carta's ERP for private capital. Managing GP carry requires reconciling complex vesting rules against fund performance. Relying on disparate spreadsheets creates a massive reconciliation burden and risks inaccurate capital account statements. In Carta, we have automated the flow of data by linking the fund and the GP entity in the same system of record.

This establishes real time tracking. Watch as we issue carry units on the LLC cap table where the vesting schedule is live. As time passes, Carta automatically updates the partner's vested percentage without you touching a spreadsheet. Now let's look at a liquidity event by updating the valuation on a portfolio asset.

In this case, Alara IT Solutions. The moment that gain is booked at the fund level, the system automatically calculates the GP allocation. It instantly validates the waterfall structure, clearing the preferred return hurdle, and executing the GP catch up provisions defined in your LPA. It propagates down to the partners based on their exact vesting status at that split second.

This eliminates manual error, ensuring the data is accurate before it ever reaches the partner's capital account statement. Only Carta's ERP connects your fund performance directly to your carry logic, eliminating the need for manual reconciliation.