What Is Approval in Principle?
Approval in Principle is a mandatory step where the General Partner reviews the proposed transfer and decides whether to allow it to proceed. Until the GP approves, all later steps of a transfer remain locked.
This checkpoint ensures that parties do not incur unnecessary legal fees or begin any more work on a transfer that the GP may ultimately reject.
Accessing This Section
The Approval in Principle page is visible to all users who are participants on a transfer, including GP Side (GP, GP Counsel, GP Administrator), Transferor Side (Transferor, Transferor Counsel, Transferor Administrator), and Transferee Side (Transferee, Transferee Counsel, Transferee Administrator).
Only the General Partner (GP) can approve or reject the transfer. All other roles have view-only access to this page.
From the Transfer Overview page, click on Approval in Principle under Pre-Transfer in the left sidebar.
Note: This step only becomes available after the Questions to Transfer Parties step has been completed.
Approving or Rejecting
As the GP, you will see two action buttons on this page:
Approve: Records your approval and unlocks all downstream workflow steps (Due Diligence Questions, KYC Verification, Transfer Agreement, Subscription Agreement, Additional Documents, Signature Process, and Closing). All transfer participants will be notified when a transfer is approved at this step.
Reject: Immediately aborts the transfer. The transfer status changes to Aborted and no further action can be taken by any party. All transfer participants will receive an email informing them that the transfer has been aborted.
When a transfer is aborted, participants will be restricted to viewing only this transfer's overview page. They will no longer be able to view any documents or data or take any action.
All active participants will receive an email informing them that the transfer has been aborted.
Note: if a transfer is approved in principle, the transfer will proceed unless the GP decides to put the transfer on hold or abort it. For full guidance on how this can be done please see: Can I put a transfer on hold or abort it?
For any further questions or assistance, please reach out via the chat on the platform or contact the Navys support team at [email protected].