One holder of record. One clean cap table.
Hold investor positions under a single North Capital Private Securities (NCPS) FBO custody structure, set up when investors subscribe or after your raise has closed, so your cap table shows one holder instead of hundreds.
Every new investor adds a line to your cap table. And a record to maintain.
Online offerings make it easy to raise from a broad investor base, but each direct holder brings its own records, communications, and transfer requests. Over time, a fragmented cap table slows down administration and future capital events, and can push you toward SEC reporting thresholds.
What cap table consolidation does for issuers
Securities are registered to “North Capital Private Securities Corporation for the exclusive benefit of investors,” and each investor is recorded on NCPS’s books as the beneficial owner. Your register shows one consolidated holder.
North Capital sends investors account notifications and fields their inquiries, so questions about accounts, statements, and access don’t land on your team.
NCPS maintains the underlying investor accounts, so you aren’t tracking contact details, documentation, and account records for every individual holder.
When an investor wants to transfer shares, or passes away, North Capital seeks the company’s approval and opens accounts for the transferees before any transfer is made.
Distributions flow directly to investor custody accounts, which reduces payment-related risk and removes the burden of maintaining investor banking instructions.
A consolidated cap table is easier to present and diligence when you raise your next round, bring in a lender, or explore a sale.
Grow your investor base without crossing reporting thresholds
Under Section 12(g) of the Securities Exchange Act of 1934, a company with more than $10 million in total assets and a class of equity securities held of record by 2,000 or more persons, or by 500 or more persons who are not accredited investors, generally must register with the SEC and begin filing periodic reports.
Because securities held through NCPS FBO custody accounts are recorded on your register under a single holder of record, consolidation may help a company with a large and growing investor base stave off those registration and reporting requirements.
How holders of record are counted, and which exemptions apply, depends on your company and offering. Consult your securities counsel.
Start clean, or clean up after the raise
Open custody accounts as investors subscribe, so your cap table is already consolidated when the round closes. Or move existing shareholders into custody after a fundraise.
Investors open NCPS custody accounts as part of subscribing, so your round closes with one holder of record. Integrate our custody APIs directly into your website, or license Opera IP, our white-label investor portal, to facilitate investment and account opening in a single flow.
Already closed your round? North Capital can spin up a website dedicated to your shareholders. You direct investors to it, and they open their custody accounts there, moving your existing direct holders under a single holder of record.
Part of North Capital custody
Cap table consolidation is one piece of our API-driven custody solution for alternative assets, with embedded onboarding, direct-to-custody distributions, and real-time portal visibility.
Whether you're preparing a new offering or cleaning up after a raise, schedule a conversation with our team to discuss your structure and investor base.