Carta creates new AI legal venture

A transatlantic legal technology deal is set to expand AI-powered services for private market investors and asset managers.

US fintech giant Carta has bought UK-based AI-native law firm Avantia, creating a new business called Carta Law.

The move will allow San Francisco-headquartered Carta to expand beyond fund administration and operations into legal and compliance services for its global customer base.

Founded in 2019, Avantia developed proprietary AI software designed to automate high-volume transactional legal work for private equity and venture capital firms.

Carta Law will combine AI-powered workflow automation with oversight from licensed lawyers, supporting tasks including compliance checks, non-disclosure agreements and know-your-customer reviews.

The deal reflects growing demand across the investment sector for integrated operational and legal infrastructure as firms manage increasing regulatory requirements and transaction volumes.

A specialist team at Knights advised Avantia on the Solicitors Regulation Authority approval process linked to the acquisition.

The Knights team, led by corporate partner Rachel Khiara and senior associate Saskia Robinson, secured regulatory approval within 60 days – significantly faster than standard timescales for similar transactions.

Rachel said: “It was a pleasure to work alongside the team at Avantia and Carta on this exciting acquisition. 

“Both businesses complement each other greatly, and I’m looking forward to seeing Carta Law go from strength to strength under such fantastic leadership.

“I was particularly pleased that we were able to act with speed to deliver this transaction, which is a testament to our commitment at Knights to deliver the very best legal advice to clients.

“I’d like to wish the team at Carta Law the very best of luck for the future as it embarks on this new venture.”

Stuart Swift, general counsel at Avantia Law, added: “Rachel and her team brought real expertise and commercial instinct to every stage of this transaction.

“Their ability to navigate the regulatory complexities of creating Carta Law, including direct engagement with the SRA while never losing sight of our business objectives, made them exceptional partners throughout.”

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