36 Portfolio Company Information Commercially sensitive portfolio company informa- tion should be provided separately and distinctly from fund-level reporting. Valuation information related to the portfolio compa- nies should be disclosed on a quarterly basis, consis- tent with the ILPA Portfolio Company Metrics Report- ing Template. Financial and Performance Reporting Performance information provided to LPs on both a quarterly and annual basis should include figures that are both gross and net of accrued carried interest, as well as the methodology used to compute performance. Historical performance figures provided during fundraising should include detail on the assumptions used to calculate unrealized gains, including EBITDA adjustments. Should a GP elect to report performance net of accrued carry, the amount of accrued carried interest should be disclosed to LPs. In order to verify performance and ensure (at a min- imum) the reasonability of waterfall/fee calculations, an LP needs access to detailed fund cash flows. At the end of the fund’s life, LPs should be provided with a detailed breakdown of each historical cash flow, expressed in appropriate accounting categories to complete a reconciliation against their internal ledgers. It is recommended that GP-provided cash flows mirror the categories used within the ILPA Capital Call and Distribution Notice Template. Specific checks against the GP-reported numbers can include: • Performance (net/gross IRR, MOIC); • Carry and clawback obligations; • Preferred return calculations (proper catch-up); • Return of capital and fees; • Fee calculations including offsets. Fund Marketing Materials Marketing materials with respect to a fund should include the following information: • Values for each unrealized portfolio company in prior funds based on most recent audited financials; • Explanation by the GP of those values that deviate from the audited statements; • Description of any pending or threatened litigation; • Performance information for prior funds on a gross and net basis, including IRR, multiple of capital and distributed to paid-in capital metrics, as well as the explanation for the derivation of IRR; • Description of any pending or threatened litigation; • Disclosure of agents and sub-agents used; • Political contributions made by the manager or any associated individuals to trustees or elected officials on investor boards; • Valuation policy; • Policy for subscription line usage. FINANCIAL DISCLOSURES