Certent Extends its Equity Solution with Support for LLC’s and MLP’s
Certent Equity Management’s new features provide SAAS solution for Profit Interest Units
Roseville, CA, July 16, 2020 – Certent, Inc., a leading provider of software-as-a-service solutions for equity compensation and financial disclosure management, announced today the release of expanded capabilities to record, track and report on Profit Interest Units (PIUs) for Limited Liability Companies (LLC) and Master Limited Partnership (MLP) .
Certent now supports Profit Interest Units (PIUs) with specific PIU settings tracked from within your equity plan, along with a new PIU specific grant type. Historically most LLCs and MLPs have had to compromise and use software solutions that were primarily designed to track equity grants. That usually involves entering in your PIUs as a grant type that fits some, but not all the tracking needs of a PIU. Tracking PIUs in such a manner leads to additional concerns such as manually tracking PIU expense outside of your software solution, uncertainty on how PIUs show up on your Capitalization table, and essentially limiting you from offering an online solution to your companies’ partners to view their PIUs online. PIUs are used by LLCs to signify a member or partner holder as having an ownership/interest in the future profits of the company (i.e. liquidity event or company discretionary payment). As with most option types, the ability to track time-based and performance-based vesting schedules is core, as well as the flexibility to accommodate for plan adjustments, distribution methods, tax considerations, and broad reporting requirements. With Certent’s Equity Management SaaS solution, LLCs and MLPs can manage their cap tables and partner (or member) PIU plans and manage their corporate governance documents.
Certent’s PIU plan management allows companies to make ‘policy decisions’ on valuation, with the Black Scholes or Intrinsic Value method accounting types along with the ability to select if you would like to apply Fixed or Variable accounting methods, settings for both Stock or Cash payout distribution following the appropriate accounting guidelines. In its first release, a library of over 50 standard reports that incorporate PIU details will be made available to cover most aspects of administration and financial reporting required for PIUs. From the basics of award detail, , vesting schedules, taxation, expense accrual, and Capitalization Table reporting that allows the flexibility to include or exclude PIUs, Certent’s Equity Solution for LLC’s is a comprehensive solution.
“Certent continues to innovate its equity management SaaS offering to serve a broader range of private companies and now, limited liability companies (LLCs) and Master Limited Partnerships (MLPs), ” says Mobeen Bajwa, Certent’s Chief Product Officer. “Now partner-owned or member-owned companies benefit from a proven equity platform with expanded functionality to support the unique requirements of PIU grant types and reports. Our customers can also benefit from Certent’s team of finance and accounting experts, services and broker partners.”
Equity Management key benefits for PIUs:
- Track LLC participants and record Profit Interest Unit grants
- Track time-based or performance-based vesting schedules
- Provide cash or share distribution payout methods
- ASU 718 or Intrinsic Value method expense management
- Ability for participants to view and manage their PIU holdings
Robust reporting capabilities: 100+ standard administrative & financial reports available
Services & Support
Certent provides a complete portfolio of services to guide clients through the equity plan administration and management processes. Our team of finance and accounting experts work with customers to implement a complete solution and also offer outsourcing services for plan administration.
- Quick start implementation for LLCs under 100 members
- Certified Equity Professionals with deep knowledge of equity compensation management
- Accounting, Taxation, Plan design, Award processing and Record keeping
- Outsourcing Services
Certent, Inc., founded in 2002, helps customers elevate their business with smart, intuitive solutions for modern finance. Our advanced solutions for disclosure management, narrative reporting, and equity management help business and finance leaders improve accuracy, save time, and get more done. Deploy with confidence over the cloud, backed by our end-to-end support services, deep expertise, and global reach. Integrate easily with existing systems and data sources. Certent helps you redefine your approach to governance, risk, and compliance. The company operates in seven countries and serves over 2,400 public, private, and pre-IPO companies around the world.