Victoria Langley Private fund managers often struggle to surface information in their old-fashioned side letter compendia, whether for ongoing fund compliance or answering investors’ questions. Searches surface too much or irrelevant information, the underlying contract language lives in separate PDFs, and information becomes outdated.
A centralized fund document solution solves these issues and enables managers to digitize side letters, categorize clauses, and search provisions with AI. Insight by Ontra offers all of these features and more.
As the leading provider of AI-powered legal technology solutions for the world’s most prominent private markets firms, Ontra counts over 700 private fund managers, investment banks, and advisers among our customers and partners worldwide.
Onboard Ontra’s Insight quickly
Implementing Insight is simple and cost-effective for our customers.
Our AI-powered contract digitization leverages Synapse, our proprietary AI engine, to quickly process side letters and identify and tag key provisions. Synapse is powered by purpose-built ML, OpenAI’s GPT-4, and aggregated insights from over 1,000,000 industry-specific contracts processed through our solutions. Our global network of experienced legal professionals completes our human-in-the-loop (HITL) system and supports accuracy.
With Insight, private fund managers and their counsel gain a digital compendium they can quickly search and use to support compliance, routine legal workflows, and their investor relations teams.
Let’s take a closer look at how customers leverage AI to digitize and onboard side letters to Insight.
Digitize side letters in Insight to create a single source of truth
AI-enabled onboarding lets Ontra upload fund managers’ side letters exceptionally quickly.
First, Ontra begins with a sample selection of a fund manager’s side letters. Once uploaded into Insight, the AI automatically begins generating the document type, parties, and effective date in seconds. Ontra’s Product Operations team carefully reviews AI outputs during this initial onboarding stage.
Next, AI-enabled onboarding transforms all side letters into structured contract data by:
- Identifying and abstracting individual clauses,
- Generating obligation names, categories, and descriptions, and
- Grouping similar obligations from new and existing fund documents.
How Ontra’s AI-enabled contract digitization works
Ontra’s AI identifies particular side letter clauses and highlights the corresponding language in the agreement. It then generates obligation names, descriptions, and categories, which fund managers can revise whenever necessary.
AI-enabled onboarding ensures fund managers and their counsel don’t need to spend days or weeks manually designating their obligations in the solution.
Once Insight has a foundation of side letters and categorized obligations, it automatically reviews any existing obligations in the solution and uses a proprietary search algorithm to review new and existing provisions across funds to group similar provisions together. Since GPs often agree to the same or similar provisions across side letters, these groupings can streamline many legal processes.
While GPs can rely on AI to do the heavy lifting during the contract digitization process, Ontra’s Product Operations team reviews AI-abstracted information to ensure our customers build a high-quality data set in Insight.
How to implement custom categories in Insight
Our AI-powered digitization automatically categorizes obligations in Insight using numerous common categories. However, private fund managers and their counsel can also designate custom categories for particular LPA and side letter clauses during and after onboarding.
Once private fund managers create a custom category, their internal or external counsel, or an Ontra Legal Network member, can properly tag these provisions in Insight. After that’s complete, managers and their counsel can easily filter their obligations based on the custom category and, when needed, pull those terms into a PDF disclosure scheduled to distribute to investors.
Ontra understands that categorization is somewhat fluid, and categories and naming conventions are often bespoke to each firm. Private fund managers and their counsel can remove or add tags to obligations in Insight at any time.
Ready for a better way to manage side letters?
- AI-powered contract digitization enables private fund managers to digitize side letters quickly and effectively, creating a single source of truth.
- AI categorizes key clauses and obligations in side letters.
- Humans in the loop review the AI-generated information for inaccuracies, ensuring private fund managers have high-quality contract data.
- Insight enables private fund managers to create custom categories related to SEC regulations, ESG, and other firm-specific needs.
Ontra’s Insight is the AI platform powering the private fund lifecycle. By embracing technology, private fund managers can simply fund management, proactively manage risk, increase transparency, and reduce expenses.
Leading private fund managers are already turning to Insight to digitize their side letters, improve transparency into their obligations, and track compliance. Get started with an Insight demo today.
