Reporting guidelines in the private equity sector have developed continuously since Invest Europe (formerly the EVCA) issued its first Reporting Guidelines in 2000. The onset of the global economic downturn, the increase in focus on responsible investment practices and the advent of pan-European regulation in the form of the Alternative Investment Fund Managers Directive (AIFMD) have all heightened the need to ensure that GPs continue to present their investors with best practice financial and non-financial information.
The 2018 Invest Europe Investor Reporting Guidelines have been developed to facilitate negotiations between GPs and LPs and to provide core reporting elements for all funds that will enhance LPs’ ability to make comparisons between different funds.
An integral part of the Invest Europe Professional Standards Handbook, the 2018 version incorporates the key tenets of best practice GP reporting to their investors and has been updated:
(i) to enhance disclosure on the use of fund bridge and leverage facilities;
(ii) to cater for the specific needs of member segments including venture capital, fund of funds, infrastructure and secondary funds;
(iii) to ensure the Guidelines continue to reflect best practice in ESG reporting.
The Guidelines also include a comparative overview against the ILPA best practice guidance on investor reporting.