New AI-powered offering closes the gap between investment data and investor reporting, bringing institutional-grade automation to complex Fund of Funds structures

SAN FRANCISCO: Carta, the world’s first fully interconnected system for private capital, today announced its solution for Fund of Funds, a new offering designed to help managers automate LP reporting, eliminate manual document processing, and gain clearer visibility into their underlying portfolio exposure. The product expands a critical link in Carta’s ERP for private capital, bringing LP investment data, fund accounting, and portfolio analytics onto a single platform, while more deeply connecting allocators with the GP ecosystem.

Fund of Funds represents a critical and growing segment of the private capital ecosystem, projected to reach $450 billion by 2033 as investors seek diversified exposure to private markets. Yet, operating a fund of funds remains highly complex. Managers sit at a unique intersection of the ecosystem, investing as LPs across multiple funds while also serving as GPs to their own investors. As a result, teams are forced to navigate dozens or more of LP portals, manually process investment documents, and reconcile data across multiple investment layers. These fragmented workflows slow reporting cycles and obscure visibility into underlying portfolio exposure.

“Fund of Funds managers have been stuck in a perpetual data chase, juggling dozens of portals, manually re-keying data from PCAPs into spreadsheets, and watching their reporting lag weeks behind the rest of the market,” said Vrushali Paunikar, Chief Product Officer, Carta. “We’re ending that. Our platform unifies fund administration, portfolio analytics, and document automation in one place, and our agentic AI powers the flow-through accounting that makes it all work, even for funds not administered on Carta. This is the missing piece of the private capital ERP.”

Streamlining Complexity: Carta’s Solution for Fund of Funds

Carta’s solution for Fund of Funds addresses modern operational challenges by consolidating fund administration, portfolio analytics, and document management into a single system. Critically, the platform aggregates all data across a manager’s entire portfolio, including funds that are not administered on Carta. Further, by unifying the GP and LP experience on a single platform, Carta is advancing its vision of a Network ERP for Private Capital, one connected system for every stakeholder across the private markets ecosystem.

• Proprietary Agentic AI for Seamless Data Flow and Accounting Automation: The platform deploys proprietary agentic AI to ingest, extract and normalize data from key statements such as capital call notices and PCAPs. This transforms static, unstructured documents into a live data feed that automatically updates the general ledger, eliminating manual entry and streamlining close and reporting cycles. One of the most significant operational bottlenecks for a Fund of Funds is the ingestion of quarterly financials. In Carta’s case, LLMs break through that bottleneck with near real-time updates to accounting workbooks.
• Deep Portfolio Look-Through Analysis: Investment teams can analyze portfolio exposure and ownership data within a single interface instead of manually aggregating information from GP reports. Managers can understand their exact exposure to underlying portfolio companies across multiple funds simultaneously while also managing compliance per the 5% GAAP disclosure rule. They can also perform side-by-side comparisons of how different GPs value the same underlying company to understand valuation deltas.
• Centralized Capital Activity Hub: All capital activity notices, capital calls, distributions, and transfers are tracked and actionable from a single hub, replacing the fragmented experience of managing dozens of LP portals and browser tabs.
• Comprehensive Visual Accounting: The platform maps complex entity relationships, fund accounting, and performance data across the entirety of a portfolio. This allows users to trace capital flows with powerful visual accounting capabilities from an investment vehicle down to an individual asset with deal-level detail.

Looking Ahead

The launch of the Fund of Funds solution is the first step in a broader roadmap for accounting automation. In the coming months, Carta will introduce directional cash forecasting and integrated treasury management tools to help managers handle liquidity across their entire network-equipping Fund of Funds managers to operate as the liquidity innovators the market increasingly demands.

Carta’s solution for Fund of Funds is available now. To learn more, visit: http://carta.com/solutions/fund-of-funds/

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About Carta

Carta is the ERP for private capital, connecting the entire ecosystem-from GPs and LPs to CEOs, CFOs, employees, and advisors. Trusted by 50,000 companies in 160+ countries, our platform streamlines every ownership workflow, making it easier to understand, manage, and grow equity. With software and services built to scale, Carta empowers you to build, invest, and grow with confidence. Carta’s Fund Administration platform supports 9,000 funds and SPVs, representing $203B+ in assets under management, with tools designed to enhance the strategic impact of Fund CFOs. Recognized by Fortune, Forbes, Fast Company, Inc. and Great Places to Work, Carta is transforming how private capital operates.

For more information visit carta.com

Fonte: Business Wire