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 email@example.com.
About the ILPA Transparency Initiative
This 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.