Comparison to ILPA and IPEV
Summary overview of the Invest Europe Investor Reporting Guidelines compared to ILPA and IPEV Reporting Best Practices
The Invest Europe Investor Reporting Guidelines have been designed with the input of both GPs and LPs so as to create a user-friendly and adaptable set of reporting guidelines which ensure that LPs’ information requirements are satisfied within the context of a framework appropriate for GPs.
In drafting this 2024 revision to the Invest Europe Guidelines the PSC has taken into account the requirements of other standard setters and jurisdictions, notably ILPA’s Reporting Best Practices (2017 release) and the IPEV Guidelines (December 2022 release), including its Quarterly Reporting Standards, Capital Call and Distribution Notice Template and Fee Reporting Template.
In our view, GPs may consider themselves as compliant with all the information requirements of ILPA’s Reporting Best Practices if they adopt these Guidelines. This is following a detailed comparison of these Guidelines and ILPA’s Reporting Best Practices. Our comparison identified only four ILPA information requirements that are not recommended in these Guidelines (which seek to define what information should be reported while not being prescriptive as to the layout or format in which such information should be presented). These four requirements have not been added as they were not deemed to materially enhance LPs’ understanding of the fund’s current position or performance. These are:
ILPA Reporting Best Practices | ILPA information requirements not recommended in these Guidelines |
Quarterly Reporting Standards |
|
– Schedule of Investments | Disclosure of gross TVPI in the prior period |
– Executive Summary | Disclosure of the advisor/manager’s AUM, “active” funds and “active” portfolio companies across the funds managed/advised Fund KPIs – distributions to be expressed as a % of total commitments as well as DPI Progression of Net IRR of the fund to be expressed graphically |
Capital Call Template | None |
Distribution Template | None |
Fee Reporting Template | None |
Furthermore, it is noteworthy that these Guidelines give due consideration to specific strategies within the Private Capital industry, namely private equity, real estate, private debt, infrastructure, venture, fund of funds and secondaries, and recommend reporting particular to those types of funds.
Additionally, there are a number of reporting aspects where the requirements of these Guidelines surpass ILPA’s Reporting Best Practices. Examples of these include:
Details of Bridge Finance and Fund Leverage facilities (where applicable);
Summary of investment parameters and restrictions;
Re-investment/recycling policy;
ESG reporting;
Disclosure of service providers such as banker, independent valuation expert and depository.
Disclosure of significant changes affecting the GP/Manager.
The % of the business exited in the event of partial investment realisations;
Investment holding periods.
In this section of the guide
In these guidelines
