Carta launches waterfall calculation tool

Fund administrator Carta has launched a waterfall modelling tool for private equity firms and private companies.

The company said it will support firms with:

• Automated quarterly valuations for LP reporting
• Evaluating the impact of potential M&A transactions on stakeholders’ returns
• Estimating equity values for employees and investors.

Further, Carta said the distribution rules in firms’ operating agreements would be incorporated in its bespoke waterfall models and connected to companies’ cap tables. These integrations should additionally automatically account for performance based-incentives and vesting schedules.

Earlier this month, the fund administrator launched a tax calculation tool.