What it does

Side letters create commitments your team must honour — quarterly reports for one investor, fee arrangements for another, co-investment rights for a third. This agent reads the side letter attached to each commitment, pulls out every obligation with the exact clause it came from, and lines them all up for your legal team to review.

Once an obligation is approved, the system takes over the calendar. Date-driven obligations become tracked tasks, repeating automatically where the side letter calls for it, and the owner gets an email before the due date, on the due date, and again if it slips — escalating to your chosen team if something stays overdue.

Every extracted obligation waits in a review queue where legal can approve it, correct it, or reject it. An obligation the agent cannot tie to a specific clause in the document is discarded, never shown.

Nothing goes live without a human saying so.

What it needs

On the agent's edit page you set:

  • Side letter document name — the exact name your side letters are uploaded under on each commitment, for example "Side Letter". The agent only reads documents with this name.
  • Auto-extract on upload — Yes if you want extraction to run the moment a side letter is uploaded; leave it No to run it manually.
  • Default reminder lead time — how many days before a due date the first reminder goes out.
  • Overdue escalation cadence — how often overdue items are re-raised.
  • Notify tag — the team, identified by employee tag, that receives alerts for obligations without a named owner, and all overdue escalations.

Turning it on

The agent is enabled for your firm by your administrator or by CapHive support. Once it is on, run the agent setup so that it appears on your Support Agents page, then configure the fields above.

Running it

  1. Upload the executed side letter to the investor's commitment, using the configured document name.
  2. Extract — run the agent for one commitment or for the whole fund. Extracted obligations appear as "Pending review" in the Obligation Matrix.
  3. Review — legal opens the matrix, checks each obligation against the cited clause, assigns an owner, and approves or rejects it. Items flagged "Changed on re-extraction" mean an amended side letter altered something that was previously approved.
  4. Track — approved obligations with dates become tasks on the task board. Event-driven obligations, such as notifying the investor if a key person leaves, stay visible as "Armed" with no date; when the event happens, fire them with a deadline and a task is created on the spot.
  5. Complete — finishing the task records the fulfilment, building an audit trail of who fulfilled what, when and how. You can also record a fulfilment directly on the obligation page, attaching evidence if you have it.

Where the output goes

The Obligation Matrix is the single view of every side letter obligation across all investors in a fund: type, owner, next due date and status. Filter it by obligation type, owning team, due date range, review status or MFN relevance. It is available from the agent's page and as its own screen.

Approved, date-driven obligations also appear as tasks on the task board, and alerts go out by email:

  • Upcoming — sent to the obligation's owner ahead of the due date, using the lead time set on the obligation.
  • Due today — sent on the due date.
  • Overdue — repeated on the escalation cadence and copied to the notify tag team.

Each person receives one consolidated email per day listing everything that needs their attention, worst first. Every alert sent is logged against the obligation.

Reading the result

An obligation's status tells you where it sits in the review and tracking cycle.

  • Pending review — extracted from the document and waiting on legal to approve, correct or reject it. It is not yet tracked.
  • Approved with a date — tracked as a task, repeating where the side letter calls for it, with reminders running.
  • Armed — an event-driven obligation with no date, waiting for someone to fire it when the event happens.
  • Changed on re-extraction — an amended side letter altered something that had already been approved. It comes back as a new item for review.

An obligation the agent cannot tie to a specific clause in the document is discarded and never shown. The matrix is therefore a list of obligations with a citation behind each one — not the agent's best guess at what a side letter probably means.

Good to know

  • Setting an obligation's reminder lead time to zero suppresses the early reminder. Due-today and overdue alerts still go out.
  • Waiving an obligation removes its open tasks but keeps the history of what was already fulfilled.
  • Re-running extraction after an amendment never overwrites approved obligations. Changes arrive as new items for review.
  • MFN-relevant obligations can be flagged during review so counsel can assess them across investors. The comparison dashboard is planned for a later release.