OverviewThe ILPA’s mission includes promoting transparency and alignment of interests between private equity investors (LPs) and the managers with whom they invest (GPs). As such, and in response to a confluence of industry developments throughout 2014 and 2015, the ILPA developed a reporting template that captures greater detail on fees, expenses and carried interest paid to GPs and their affiliates.The aim of this proposed template is to encourage increased uniformity in the disclosures being provided to LPs. This will benefit the industry in two ways:
- Providing LPs with an improved baseline of information that lends itself to more streamlined analysis and informed internal decision-making
- Reducing the compliance burden on GPs, who face a variety of bespoke template formats
The ILPA recognizes that no template or best practice can fit all the needs of every LP, or reflect the operational realities of every fund or GP. We strongly encourage all of our members, GPs and industry thought leaders to endorse and implement this guidance, and to encourage their peers to the same for the sake of reducing the challenges that heterogeneity in reporting formats poses for the entire industry. The ILPA welcomes continued industry feedback on the practicalities of implementing the template, and its impact on moving the industry towards more standardized reporting. We also encourage suggestions on how the template and the accompanying guidance can be further refined over time to maximize its usefulness for all stakeholders.For more information on the Reporting Template, or to submit a question or comment please contact us at firstname.lastname@example.org
About the ILPA Transparency InitiativeThis proposed reporting template is the first deliverable under the ILPA’s Transparency Initiative, a broad-based effort that aims to establish more robust and consistent standards for fee and expense reporting and compliance disclosures among investors, fund managers and their advisors.In addition to the reporting template, this initiative will produce recommendations on the role of third parties (such as administrators, auditors, consultants and attorneys) in ensuring compliance with a fund’s governing documents, and propose detailed best practices relating to fee and expense reporting and compliance disclosures via an appendix to the 2011 ILPA Private Equity Principles. These documents will be published 2016.
Download the ILPA Reporting Template
Download the ILPA Reporting Template in XML FORMAT for reporting software systems:
- Introduction to XML provider AltExchange and their Data Standard
- XML compliant Guidance and Definitions
- XML version of the ILPA Reporting Template
- XML version of the ILPA Reporting Template for Funds of Funds
Endorsement and AdoptionDuring the creation of the template many LPs and GPs expressed a desire to publicly commit to abiding by the recommendations contained in the Reporting Template as a way to signal their commitment to the highest standard in private equity reporting and to be recognized as a leader in the effort to standardize and improve the private equity industry. To help communicate the scope of adoption within the industry, organizations are encouraged to endorse the Template. Instructions for endorsing the Template are provided on ilpa.org.
In general, a Template endorsement signals that the endorsing organization:
- Believes that a single standard for fee disclosures is necessary to efficiently monitor and report private equity fund activity
- Will make best efforts to adhere to all of the Template Guidelines
- Will not modify the Template beyond what is prescribed in the Template Guidelines (most notably, Sections VIII, IX, and XIII)
- Will not make, or comply with, requests to complete alternate, customized template formats that provide the same data points found in the ILPA Template
- Recognizes the challenges faced by GPs and LPs with regards to completing the Template and monitoring fees, respectively, and will make best efforts to collaborate with each other to ensure that the Template is applied in the most effective and efficient way
- They’re willing to encourage their GPs to complete and adopt the Template
- They will use content yielded by the Template to systematically monitor their portfolio
- They will phase-out use of any other formats they’re using to gather fee data
- In the short term, they’re willing to complete the Template for any LP that requests it
- In the long term, they’ll work towards implementing an automated solution that provides the Template to all of their LPs on a regular basis, as part of their standard reporting package
A list of endorsing organizations can be found below and is updated periodically.
Current Template Endorsers
For more information on endorsing the template, ILPA's CEO Peter Freire outlines the significance of the template and what it means to endorse it in a letter to ILPA members and the private equity industry.
What it Means to Endorse