How does Sydecar review a transfer?
Sydecar checks every transfer before anyone signs. Most pass automatically. Some need a closer look from Sydecar's team before the agreement goes out.
Checks that happen as you fill in the form
As you enter a transfer, the form checks the holding period and the deal's ownership limits and shows the result under "Transfer type". A check that passes reads as a plain line, for example "Within limits: 10 / 99 beneficial owners OR 0.4% / 2% transferred". The form tells you when something needs Sydecar's review.
What sends a transfer to Sydecar's team
- A chosen effective date. If you pick "Another date" instead of "Soonest possible", you give a reason for the date and Sydecar reviews it. This includes a date in the past.
- A date inside the 90-day holding period. A sale can take effect inside the holding period if the parties' legal counsel gives its reasoning. Put that reasoning in the reason field. See What is the 90-day holding period, and why does it matter?.
- A sale over the deal's ownership limits. The form shows a warning when the deal is at or over its beneficial owner limit and the sale would also take it over the 2% limit. You can still initiate the transfer. See What is a beneficial owner, and what happens at my SPV's limit?.
- A transfer that adds an owner when the deal is at its owner limit.
- Documents for an administrative transfer. When the transferor and the receiving party have different control persons, the transferor uploads a document showing how they are related, and Sydecar reviews it. See How do administrative (affiliate) transfers work?.
- The transferee's profile. Every transferee passes identity verification (KYC) before signing. The "Transfers" tab shows "Transferee in KYC review" while that happens.
What happens during a review
The transfer shows "Transfer in review" on the deal's "Transfers" tab, and the transfer's side panel shows where it is in the process. No documents go out and no one signs until the review is done. Sydecar emails you when it is finished, and may ask for more information in the app.
How a review ends
- Approved. Signing opens and everyone who needs to sign receives an email.
- More information needed. Sydecar asks in the app or by email.
- Canceled. If the transfer can't go ahead, Sydecar cancels it. The "Transfers" tab shows "Canceled" with "By Sydecar", and you can start a new transfer.
A review doesn't mean the transfer can't happen. For the reasons a transfer is flagged, see Why was my transfer flagged for review?.
Still have questions? Contact our Deal Operations team at operations@sydecar.io.