To further help both GPs and LPs, the Institutional Limited Partners Association (ILPA) released 18 October its latest set of standardised reporting templates focusing on quarterly reporting.
The templates were created to enable LPs to accurately interpret and account for a transaction; reduce LP and GP processing times; enable GP compliance concerning documentation; and improve LP/GP communication.
ILPA issued the guidelines after receiving comments from the trade group’s membership, GPs, auditors and other industry professionals.
“It is encouraging to see GPs and LPs work together to create solutions that can only help strengthen the industry over the long term,” said Jim Pittman, the chair of ILPA’s reporting guidelines committee and vice president of private equity for PSP Investments.
Pittman and his team have reached out to more than 50 GPs for feedback on the templates, hosted roundtable table discussions throughout the development process, and posted the documents for a comment period.
The latest templates come just 10 months after the first set were released.
In January, ILPA released its first template that focused on capital calls and distribution notices.
ILPA chose to tackle capital calls and distribution notice reporting because it was an issue on which both general partners and limited partners asked for help, Kathy Jeramaz-Larson, ILPA’s executive director, told PE Manager in a previous interview. “[This was an issue] where the industry was looking to create some efficiencies on the LP and the GP side,” she said about the first template.
ILPA kicked off its efforts at standardising and simplifying reporting last fall, with the ultimate goal of creating consistency, accuracy and expediency in partnership financial reporting.
The industry trade organisation published a list of Private Equity Principles in 2009 that were meant to help LPs and GPs improve governance, transparency and alignment of interests.
The quarterly reporting template can be accessed here. ILPA is requesting feedback about the template and hopes to publish the three remaining templates, which will deal with issues like annual reporting, in the next few months.