As retail participation in private placements grows, more investors are filling in complex subscription agreements that they are not familiar with. This leads to back and forth between advisors and investors correcting errors on ‘not-in-good-order’ documents. Existing manual processes are struggling to keep up, and dealers are asking themselves if there is a better way.
What if they could reduce the number of not-in-good-order subdocs by 85%?
And it is not just dealers who work with retail investors who see the benefits of digitization. Syndicate members and institutional investors also benefit from the efficiencies that digital transformation brings.
Electronic document signing is the answer, but what does it take to digitize a subscription agreement? How can it be achieved when each issuer counsel has different requirements for the subdoc?
As you look closer, it becomes clear that capturing an eSignature is just the tip of the iceberg.
What is the Subdoc eSignature Iceberg?
Sure, the iceberg may not be the most original metaphor—but it works. And when it comes to getting a properly signed and error-free subscription document, the eSignature is just the last step. The real work happens beneath the surface.
The tip of the iceberg is what most generic eSignature solutions promise. But while they are fine for simple tasks like basic contracts, they struggle with the complex subscription documents used in private placements.
Getting to Digital Subdocs
The only way an eSignature solution can efficiently work in private placements is if it is supported by everything that you see under the surface. DealFlow from Katipult was created specifically to address the challenge of digitizing private placements. Here’s how we do this:
- Intelligent digital subdocs that support a wide range of exemptions. We use conditional logic to ensure signers only receive the documents and pages that are relevant to them. We also prevent investors from moving on without completing mandatory fields.
- Automatic data integration from clients’ databases. Many of the fields in our intelligent digital subdocs are already pre-pre-populated with the signer’s data – making the signing process even smoother. We do this by importing the data from the clients’ backend databases (such as Dataphile, ISM, or CRM Systems) and integrating it with DealFlow’s DataHub.
- Data enrichment capabilities without the compliance risks. Pre-populating fields is a great efficiency boost – but what if the clients’ database has inaccurate or outdated information? That’s why DealFlow also allows the relevant person to add or alter the data before it goes to the subdoc. All changes are also automatically highlighted for review by the compliance team, so data integrity is maintained.
Can Your Digital Solution Navigate the Subdoc eSignature Iceberg?
Private placement workflows are complex by their very nature, and generating efficiencies through electronic documents is not as straightforward as it appears. Getting it right can eliminate 85% of not-in-good-order documents, streamline order processing, and shave days off the closing process.
The only question is – can your digital solution successfully navigate it?
At Katipult, we’ve proven that we can. That’s why Tier-1 clients like like Canaccord Genuity, TSX Trust, Raymond James, and Echelon Wealth Partners trust us to digitize their private placement workflows. Contact us to see how we can help you.