In the fall of 2016, the ILPA posted updated versions of its Best Practice Documents, to encourage adoption of standardized reporting between private equity managers and their investors. All of these refreshed documents are now available to the entire industry on ilpa.org.
Key changes made are as follows:
1. Reporting Template (for Fees, Expenses, and Carried Interest)
- In the Guidance document, added further clarity on Template implementation, including acceptable modifications, differences between Level 1 and Level 2 content and instructions on applying the Template for older and smaller funds, as well as detail on what a Template endorsement means
- In the Template, expanded definitional clarity on Non-Cash Contributions & Distributions, Realized Gain / (Loss), Change in Unrealized Gain / (Loss), Beginning and Ending NAV, Partnership Expenses as well as formula error fixes to cells H38:M38 and J77.
2. Quarterly Reporting Standards
- Reflected new content from the ILPA Reporting Template
- Streamlined the content by removing references to separate ILPA initiatives
3. Capital Call and Distribution Notices
- To the Best Practice document, added new transaction type categories from the ILPA Reporting Template, streamlined content by removing references to separate ILPA initiatives, and clarified the guidance regarding the side-calculation section of the Template
- To the Template, revised transaction types to more closely reflect the ILPA Reporting Template and clarified the guidance regarding the side-calculation section of the Template (Section D)
4. Due Diligence Questionnaire
- Added new questions regarding compliance with the ILPA Reporting Template to the “Accounting / Valuation / Reporting” sections.
- Revised the original “Governance” and “Risk / Compliance / ESG” sections to reflect PRI’s new Responsible Investment DDQ, and to re-order/merge/edit existing questions from these sections