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 2015 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 2015 version incorporates the key tenets of best practice GP reporting to their investors and has been updated:
(i) to take account of the changing landscape following the implementation of the AIFMD across the EU
(ii) to catch up on the evolution of accounting reporting standards
(iii) to increase transparency, and
(iv) to address areas of non-financial disclosure including fee calculation, ESG and conflicts.