#USA #Austin #Private Equity #6lock #Same Day Distributions

6lock's Transformation with Same Day Distributions

In a game-changing announcement, 6lock, the innovative platform known for Verified Money Movement™, has introduced an incredible feature: Same Day Distributions. This new workflow is specifically designed to alter the current private equity landscape by simplifying and expediting the distribution process for limited partners (LPs).

Revolutionizing Distribution Workflow

For ages, private equity firms have navigated a labor-intensive and time-consuming tradition of handling payouts. The standard protocol consisted of collecting updated bank account information, confirming these accounts, verifying micro-deposits, and manually reconciling payments on spreadsheets. There’s also the requisite phonecall to confirm account details — a process that could slow transactions and add unnecessary costs.

With 6lock's latest feature, repetitive callbacks and manual verifications have been eliminated. Now, firms can create and fund LP distributions in one cohesive day, eliminating the four to five days that were previously required. Using a single wire transfer, private equity firms can now send secure payments to all types of LPs from a centralized location. Most importantly, LPs can expect to receive their funds on the same day by their preferred payment method.

The Need for Speed and Security

According to Todd Sorrel, Co-Founder and CEO of 6lock, “Private equity firms move significant amounts of money using processes that are still far too manual. Same Day Distributions provides fund teams with the necessary speed without sacrificing control or visibility.” The system utilizes an existing waterfall schedule to execute payments, allowing funds to be dispersed promptly and efficiently.

Funds can be distributed all at once or in stages, depending on capital availability, offering firms the flexibility they require for seamless transactions. The unique implementation of single-use accounts serves as a security feature, preventing the interception or reuse of standing account details.

Enhanced Visibility and Control

Flexibility isn’t the only advantage; firms also gain a holistic view of their financial activities with the inclusion of real-time tracking on 6lock’s platform. Each firm can monitor the total distribution amount, amount funded, and payment status for each LP. The complete visual tracking system provides clarity from initial upload to final settlement, replacing the tedious manual reconciliation process.

Trey Anderson, Head of Product at 6lock, emphasized the desire to eliminate phone call confirmations. Instead, the platform verifies accounts before the money is transferred, allowing transaction times to drastically decrease without compromising on necessary checks.

Availability

Same Day Distributions is now live within 6lock's workflow, providing private equity firms with an essential tool to enhance their efficiency and security. In a world increasingly susceptible to fraud, where traditional methods are no longer credible in verifying identities, 6lock delivers an auditable and secure solution for private markets.

For more information about 6lock and its transformative offerings, feel free to visit 6lock's website.

About 6lock

6lock is committed to safeguarding private equity fund flows, offering solutions that restrict fraud and human error across the sector. By enabling identity verification and real-time execution of transactions including capital calls, distributions, and vendor payments, 6lock protects the entire private equity ecosystem. They are also SOC 2 Type II compliant, committed to reducing operational burdens while increasing security across fund operations.