From account creation to finalizing a deal, here’s a step-by-step guide on creating a Deal Sponsor account and getting your first deal ready to accept IRA capital.
In this Article:
Signing up for Your Deal Sponsor Account
Determining What Deal Docs are Required
How to sign up for your Deal Sponsor account
The first step to launching an offering on our platform is signing up for your free deal sponsor account.
- Sign up for your Deal Sponsor account here.
- Next, choose your deal sponsor type:
- If you are acting on behalf of a corporate entity, like a private company, partnership, or fund, select “corporation”.
- If you are acting on behalf of yourself or another individual, select “individual”.Next, choose your deal sponsor type:
How to create your deal
Now that your Deal Sponsor account is all set up, let’s create your first deal!
- From your Deal Sponsor dashboard, click “Create New Deal”
- Next, enter your deal information on the Deal Overview page
- Determining what to select for “Fund Full Commitment at Closing”
- Select “Yes” if the full commitment amount is going to be due at closing
- Select “No” if this deal will have capital calls
- Determining what to select for “Secondary Offering”
- Select “Yes” if you’re an individual selling your securities
- Select “No” if this is not a reselling of securities
- Determining what to select for “Fund Full Commitment at Closing”
- Last, check the “I certify” box and click “Create Deal”
How do I know what deal docs need to be uploaded?
Uploading deal docs is a requirement to ultimately complete the deal. Note: There is an option to skip this step, but we highly recommend completing this before inviting investors.
Different deal docs are required based on the type of entity you selected when you created your account. The documents listed below are for all asset types EXCEPT a promissory or convertible note. For promissory or convertible notes, you only need to upload the actual promissory note or convertible note.
| C-Corps | LLCs | LPs |
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Pro tip: When you upload documents for your deal, all investors will be able to view the docs when they receive their invitation to participate in your deal. We highly recommend a blank purchasing/subscription agreement and signature packet to avoid any specific investor/deal details being seen by all investors that are invited to your deal.
How to create a signature packet
You may need to modify your deal documents to accept IRA capital. Signature packets should include only the pages that Alto is required to sign as the investor’s IRA custodian.
We will use the signature packet that you uploaded to fill out specific deal details and sign as the Authorized Signatory when we finalize this investment later on in this process.
Any personal, accreditation, and qualified purchase information in your purchasing/subscription agreements will have to be completed by the investor, and investors will only be able to view their completed (signed) signature packet on their account dashboard. They are not able to see signed documents of other investors participating in the deal.
When uploading documents, please leave the following fields blank for Alto to complete:
- Name of entity
- Your investor’s IRA entity is executing the investment, so the naming convention is “Alto IRA FBO John Smith Roth IRA”
- Investor tax identification number/EIN
- Signature and title of authorized signatory
- Address of custodian
Note: If your documents have fields indicating the number or class of shares purchased or other information Alto would need to know, please complete those fields.
How to add banking information
Once you’ve added all the required deal documents to the deal, click “No, I’m Finished” and you’ll be prompted to add your banking information. This is where Alto will send your investors’ funds to complete this deal.
- Click “Add Required Info” under Bank Info
- Then, enter your full banking details and click “Save Banking Details”
Note: At this time, we can only send funds to domestic bank accounts.
How to invite new investors
There are two ways to add new investors to your deal on our platform. You can create a unique link to send to multiple potential investors, or you can add new investors by sending individual invitations.
| Create a Unique Link | Send Invitations Individually |
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Note: When people click on your unique link, they’ll either be prompted to sign up for a new investor account or log in if they already have an investor account with us.
After you’ve added new investors to your deal, the investors will be prompted to sign into their Alto account and e-sign a direction of investment, which will authorize us to execute this investment for them.
How to complete a final review
You will receive an email notification whenever the investor has e-signed the direction of investment. At this point, you’ll be ready to complete a final review for this investment for each investor who’s completed the direction of investment step in their account.
- By the investor’s name, click “Final Review”
- Then, review the investment amount and click “Execute/Transfer Funds”
What’s next? Once you’ve completed your final review for investors, we will fill out and sign the signature packet and send funds your way! This process typically takes between 2 - 3 business days.
Need to edit a commitment amount for an investor?
You can edit an investor’s commitment amount in your deal sponsor dashboard—as long as you haven’t completed the final review for that specific investor.
How to edit a commitment amount:
- From your dashboard, click on the deal name
- Scroll down to the investors section and select the investor that needs their commitment amount edited
- Then, click the pen icon next to the total commitment amount
- Next, the investor will be prompted to e-sign the direction of investment again with the new amount included
- After the investor e-signs the direction of investment, you’ll be prompted to complete your final review for this investor
How to upload counter-signed documents
As soon as we’ve signed the signature packet, you’ll be asked to upload counter-signed documents for that investor.
- Log into your deal sponsor account
- Click on the deal name and select the investor’s name
- Scroll down to the documents section and click “View by the Investor-Signed Doc”
- Sign and upload the document onto the deal page
Note: If you’re not ready to upload the counter-signed version of the signature packet yet, we will still move forward with our finalization process and send the funds your way. You can always log back into your Deal Sponsor account to upload counter-signed docs at a later time.
How to issue a capital call
If your deal has capital calls, then we won’t send the investor’s payment after we finalize the investment on our platform. Instead, whenever there’s a capital call notice, you can log into your Alto account to issue the capital call.
- Log into your deal sponsor account
- Click on the deal name
- Select the investor’s name
- Click “Create Capital Call”
- Fill in the amount and upload the capital call notice
- Click “Execute/Transfer Payment”
- The investor will be prompted to log into their account to e-sign the direction of investment
- Alto will approve and send the capital call payment
Deal Sponsor FAQs
Does it cost anything to sign up for a Deal Sponsor account?
Not at all! Deal Sponsor accounts are free to sign up and maintain.
What if I want to create more deals?
You can create as many deals as you’d like in your deal sponsor account. Simply log into your deal sponsor account and click “Create New Deal”.
What do I do if my deal has a tight funding deadline?
Just let us know by reaching out to our team here! We will do our best to meet the funding deadline. As long as the investor has a funded Alto account that’s been opened for at least seven days and you’ve completed your final review, we will do our best to expedite our finalization process to execute their deal by your funding deadline.
How do I update my banking information?
If your banking information has changed, then reach out to us and we’ll help you to add your new banking information.
What if I need to switch out my deal docs?
Our team will be able to switch out your documents for you. Contact us with your changes and we’ll update them in our system.
What if an investor wants to make additional investments into the same deal?
If the deal is set up without capital calls, then you’ll be able to log into your deal sponsor account and click “Create Additional Investments” for your investors. They’ll be prompted to log into their account to e-sign the direction of investment, and we’ll finalize and send the additional funds over.
What kind of tax or investment documents do I need to send to Alto?
If you have 1099s or K1s, then please send them to investments@altoira.com.
Can Alto complete a W-9 for my investors?
Absolutely! Just add a blank W-9 in the signature packet for the deal and we’ll complete that form for you.
How do I send investment distributions?
If you need to send funds back to the investor’s IRA, then contact us for our banking instructions.