Central to fund administration is the orchestration of money into and out of the fund's accounts. Whether it's facilitating investment wires from a fund to a portfolio company, reimbursing expenses from the management company to the general partner, or distributing funds from a fund to limited partners, every step involves moving money from point A to point B.
Today, these transactions are facilitated by a disparate combination of spreadsheets, paper, manual wires, and phone calls. Processing times can be slow; clients need to know their wires' status; and even after those wires are set up, clients need to navigate to a separate bank portal to release the payment, adding unnecessary steps to an already complex process.
We’re introducing Automated Money Movement to change that— and set a new standard for how fund admins move money.
With Automated Money Movement, you get:
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Consistent processing. Removing the manual nature of moving money means more consistent, error-free, and even speedier processing.
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No fees from Carta. There are no transaction fees from Carta, and the automatic release of payments means no unexpected charges on late or expired wires.
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Less hassle. You can approve multiple payments at once, and you no longer need to log into a separate bank portal to release wires.
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Visibility and transparency. You’ll have complete visibility into the status of payments directly from Carta.
Human error is an inherent risk in manual data entry: A single clerical error can lead to costly mistakes and reconciliation headaches. We also noticed that expensive transaction fees and expired wires imposed financial strain, operational hurdles, and general inconvenience to fund administration clients.
With Automated Money Movement, client requests for investment wires or expense reimbursements will be automatically set up for client approval, reducing processing times and ensuring consistency and timely execution.
In addition, clients can now approve multiple payments at once, simplifying the approval process by eliminating the need to toggle between platforms. With Automated Money Movement, the days of logging into a separate bank portal to release wires are over. Payments will be seamlessly released as soon as they are approved.
Today Automated Money Movement is available for expenses and management fees. We’re working to expand it to all fund transactions this year. If you are a Carta fund admin client, we’d love for you to try it out. If you have feedback, please reach out to me at vrushali@carta.com.
If you’re not yet a fund admin client, request a demo today:
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. ©2024 eShares, Inc. dba Carta, Inc. ("Carta"). All rights reserved. Reproduction prohibited.
