WEALTH TECH
6lock Launches Same-Day LP Distribution Tool for Private Equity Firms
The Verified Money Movement platform removes manual callback verification, which it says is vulnerable to voice cloning, in favour of in-platform account verification and real-time tracking.
6lock, a Verified Money Movement platform built for private equity firms, has launched Same Day Distributions, a new workflow enabling firms to create, fund and complete a limited partner distribution in a single day. Using an existing waterfall schedule, a firm can create the distribution and, with a single wire, disburse funds to every limited partner, individuals and entities alike, with LPs receiving funds the same day through their designated payment method.
Removing phone-based verification
Paying a distribution has traditionally required firms to collect updated bank details, confirm accounts by phone, verify micro-deposits and reconcile each payment manually in a spreadsheet. 6lock says such callbacks are slow and costly, and that voice confirmation no longer proves identity when a familiar voice can be cloned from seconds of audio. Same Day Distributions removes the callback, verifying bank accounts and approvals inside the platform instead. Todd Sorrel, Co-Founder and Chief Executive at 6lock, said: "Private equity firms move significant amounts of money using processes that are still far too manual. Same Day Distributions gives fund teams the speed they need without sacrificing control or visibility."
Flexible funding and real-time tracking
Firms can fund a distribution in full or in parts, send multiple payments against the same distribution as capital becomes available, or approve and stage a distribution before funding arrives. Each distribution is funded through a unique, single-use account, removing standing account details that could be intercepted or reused. Trey Anderson, Head of Product at 6lock, said: "Finance teams have always used a phone call to verify payment details. We wanted to remove that. Same Day Distributions verifies the account itself before money moves, so a firm can take days out of the process without compromising controls."
The platform gives firms a live view of the total distribution amount, the amount funded and paid, each LP's approval and bank-account status, and which recipients have received funds, replacing manual reconciliation with a single auditable record. Same Day Distributions is available now within 6lock's existing distribution workflow. 6lock is SOC 2 Type II compliant.