Product updates: January 2023
We interrupt your regularly scheduled product update to share some news: Passthrough raised a $10M Series A led by Positive Sum.
This round helps us make investing into funds a one-click checkout experience. Check out this TechCrunch article
and a blog post from us
for more information. The private capital markets run on Passthrough.
We also announced Passthrough’s second product: KYC/AML
. Available as standalone or fully embedded into your subscription document workflows, investors easily map beneficial owners, we screen them against sanctions lists, and fund managers have the tools to assess and manage risk. That profile is persistent and follows them across any investment on our platform.
Last, I’m thrilled to welcome Julius Leiman-Cabria as Passthrough’s Chief Legal & Compliance Officer to guide our compliance product. Julius joins us from Wealthfront and has decades of experience leading legal and compliance at companies like Carta, JPMorgan Chase, MUFG, and the SEC. We’re excited to work with Julius again and for him to work with current and future customers.Let’s dig into KYC/AML and still other updates below. Reach out if you’d like to learn more.
KYC/AML: Investor Document Collection
You need to understand who’s investing into your fund down to the underlying beneficial owner. Typically, teams map out beneficial ownership on a white board and have to ask for new information each time an investor outlines new owners.
For KYC/AML customers, your investors can do this in a new section called Diligence. They answer questions about the investing entity, provide documents and owner information, and then share additional documents and information for each underlying owner in a simple UX instead of over repeated emails. Investors no longer need to reference a checklist to determine which documents to send and you get documents and data structured in the system.
KYC/AML: Review Tools & Automated Screening
Once an investor submits information, you need to review it before running screens manually in another system. Instead of going to another vendor to manually search names and compare data, we built the process into Passthrough.
When an LP submits their KYC information, the individuals and entities behind their vehicle are automatically screened against sanctions, politically exposed persons, and adverse media lists. You review the data, documentation, and screening results in one place.
Besides performing an initial screening, Passthrough runs nightly screenings. We alert you to any updates or new matches to help you manage risk on an ongoing basis.
Legal Name Column in Fund Closings
When fund managers think about their investors, it’s often the name of the relationship and not the legal entity. So, the more colloquial Tim Flannery or The Flannery Family instead of Tim Flannery, LLC. Fund formation attorneys only care about the legal entity name, but that information is typically hidden in an investor’s responses instead of being displayed front and center.
We added a sortable column to the dashboard that shows the relationship name, legal entity name, and every other status update. Now everyone can easily find investors regardless of which name they care about.
Refreshed Passthrough Website
We launched a brand new website. It’s a more professional look with information about our existing subscription document product and now KYC/AML. We also highlighted specific use cases for emerging and established fund managers. We’ve got more coming this year, and our website is flexible to accommodate it.