The Private Equity Industry Guidelines Group (PEIGG), a volunteer group of market participants formed to create standards, has issued guidelines for reporting performance to limited partners in private equity funds.
In a press release, members of PEIGG said the issuance of final reporting guidelines was delayed in order to “gather more comments”.
The guidelines used as a base similar guidelines issued by the European Venture Capital Association (EVCA) and the British Venture Capital Association (BVCA).
In a statement, PEIGG chairman Bill Franklin of Bank of America Capital Corporation, said: “Institutional investors receive a tremendous volume of information from managers on a quarterly format, much of it in different formats. . . These Guidelines are a step forward in improving the efficiency of the information exchange process for both investors and managers”.
The statement noted that “industry feedback” had led the PEIGG to segregate portfolio company information from fund-level information in its guidelines. The guidelines do not require disclosure of portfolio company information but rather “provide a framework for disclosing portfolio company information”, according to the press release.
Many general partners have scaled back their disclosure policies to limited partners in light of public-disclosure trends in the US and the UK. Many of these GPs are worried that portfolio-level information will be made public or requested by rival businesses.
The new guidelines may be obtained at www.peigg.org