How to manage co-lenders in Carta Loan Ops
A co-lending arrangement can include multiple lender classes with different priority levels:
Pro rata: All lenders share payments proportionally based on their committed amounts.
First-out / last-out: A unitranche structure where one class of lenders (first-out) is repaid before the other (last-out).
Each co-lender appears in the Parties tab of the loan record.
How to view co-lenders on a loan
Open the loan record.
Select the Parties tab.
The Parties tab shows the borrower, lead lender, agent, and all co-lenders, along with each co-lender's committed amount and lender class.
How to sell a participation or assignment to a new co-lender
From the loan record, select Sell Participation.
In the Transfer modal, set the transfer type:
Assignment (the new lender becomes lender of record)
or
Participation (the original lender stays lender of record; the buyer gets sub-participation rights).
Select the selling lender (From) and the new co-lender (To).
Enter the transfer amount, effective date, and price.
Select Create Transfer. The system updates each lender's participation share and routes future payment obligations to the new co-lender as of the effective date.
How co-lender payments are allocated
When a payment is recorded, Carta Loan Operations allocates it to each lender based on their participation share as of the payment date. Allocation details appear in the payment record and the Accounting Schedule sub-nav under Payments. Assignments take effect on the transfer effective date, so payments before that date route to the original lender.