Definition
Know Your Business (KYB)
Verification of an LP entity's beneficial owners and corporate structure.
Know Your Business (KYB) is the entity-level equivalent of KYC: when an LP invests through a corporation, LLC, trust, or family office vehicle, the SPV must verify the entity's formation documents, beneficial ownership (every individual owning 25% or more), and authorized signatories. KYB also covers FinCEN Corporate Transparency Act reporting where applicable. KYB is more involved than individual KYC and is the single most common source of delay in closing an SPV.