Capital Call, Distribution & Quarterly Reporting

As fiduciaries, Limited Partners seek increased transparency and reporting in order to inform and guide their boards, trustees, portfolio managers and risk departments. To serve these various constituencies, investors repeatedly inquire General Partners about their investment activities. The ILPA has been working, in conjunction with GPs and LPs, to develop a set of standardized best practices and reporting templates to improve GP/LP transparency and generate industry efficiencies.

The Capital Call & Distribution Notice Best Practices were established in January 2011. The Quarterly Reporting Standards were established in October 2011.

Capital Call & Distribution Notices

From the LP’s perspective, capital call & distribution notices (“Notices”) are the initial basis for its monitoring and fiduciary reporting duties. Notices are expected to enhance an LP’s understanding of how capital is being allocated, while allowing a GP to efficiently manage cash flow requirements.

After extensive consultation with GPs, LPs and third-parties, the ILPA developed guidelines for the expected level of content in Notices. To establish consistency in reporting, it also created a Notice template that can be used by the entire industry.

Quarterly Reporting Standards

The ILPA's Quarterly Reporting Standards (QRS) establishes the minimum level of periodic disclosure expected from GPs. These guidelines, which include a range of sample reports and working templates, will improve an LP's ability to monitor their portfolio and reduce their ad hoc data requests.