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Increasing an LP's commitment

Increasing an LP's commitment

GPs can initiate a commitment increase for a Partner at any time on Carta.

Carta provides a generic template for increasing a Partner’s commitment. The document template contemplates increases in commitments:

  • From existing Partners

  • Within the previously set total fundraising dollar amount

  • Within the previously set fundraising period

  1. To initiate a commitment increase, you will need to go to the appropriate Fund or SPV and select the Partners Tab.

  1. Click on the dropdown next to the Partner's name and select Initiate commitment adjustment.

  1. Read the instructions carefully and download a blank template to be reviewed by your Legal Counsel.

  1. On the next step, you will be required to:

    1. Fill out the details from your Fund and select the Partner's contact and signatory information

    2. Enter the adjustment amount.

  1. Review the template set and select the checkboxes after reading prior to signing the document.

  1. Once signed by you, your Partner will receive an email notification and will also see a task on their Carta Account to sign.

Frequently asked questions

I used Carta Closings Tool for the initial close, can I use it for the increase of commitment as well?

The Closings Tool is only a working page for the subscription process and, therefore, only supports initial or subsequent closes. No commitment adjustments can be submitted there and can only be submitted through the feature available in the Partners Tab.

I finalized the increase of commitment, why didn't the amount change on the Carta Closings Tool for that Partner?

The Closings Tool is a working page for the subscription process. Therefore, once countersigned, the information there won't be changed. The master page for investors’ data is the Partners page, so any changes after the close are only reflected there.

Can I use this template to initiate a decrease of commitment?

This feature only supports increases of commitment. If you need to work on an adjustment to decrease the commitment, we recommend that you work with your Legal Team separately on the appropriate document and notify your Carta Team to update manually the amount on the Partners tab.

Arcade

Please refer to this video for detailed steps when working on this process.

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