The Institutional Limited Partners Association (ILPA) recently released its updated ILPA reporting template (Reporting Template) and a new ILPA performance template (Performance Template), together with corresponding guidance.
The enhancements aim to promote greater standardisation, transparency and comparability in private fund reporting, reflecting the industry’s evolving dynamics. As such, the Reporting Template and the Performance Template aim to strengthen the alignment of interests and partnerships between general partners and limited partners to foster a more efficient and trustworthy investment environment.
Background
The original ILPA reporting template was introduced in 2016 to standardise disclosures related to fees, expenses and carried interest within the private fund sector. Since then, the industry has experienced transformative changes, including, among other things, shifts in fund economics, increased expectations for transparency and the emergence of advanced technological solutions to support reporting processes.
ILPA initiated the formation of the Quarterly Reporting Standards Initiative (QRSI) in 2024, in response to the US Securities and Exchange Commission’s proposed release of the Private Fund Adviser’s Rule (PFA) to ensure that the ILPA reporting framework conformed to the PFA. When the PFA was vacated by US courts, the QRSI became an “industry-driven” solution engaging a diverse group of stakeholders, including limited partners, general partners, service providers and consultants, to collaborate on updating the Reporting Template.
Key Updates to ILPA’s Reporting Template
The Reporting Template introduces several notable changes, including:
- Additional Cash Flow Detail. The Reporting Template added more detail to the cash / non-cash flows section to include offering and syndication costs, placement fees and partner transfers.
- Detailed internal chargebacks. The Reporting Template now requires the breakdown of internal chargebacks, enabling the identification of expenses allocated or paid to general partners or related entities.
- Granular external partnership expenses. The Reporting Template provides a more detailed categorisation of external partnership expenses, aligning more closely with general ledger accounts to enhance clarity and consistency.
- Uniform reporting level. The Reporting Template establishes a single uniform level of detail for all general partners, with the aim of promoting consistency with the reporting frameworks outlined in governing documents and accounting standards.
The Reporting Template replaces the 2016 version going forward for funds still in their investment period during the first quarter of 2026 and for funds commencing operations on or after 1 January 2026.
Introduction of ILPA’s Performance Template
Alongside the Reporting Template, the ILPA published the Performance Template designed to standardise return calculation methodologies in the private fund sector.
The key features of the Performance Template include, among other things:
- Cash flow and portfolio-level transaction mapping. The Performance Template sets out tables to capture cash flows as well as fund- and portfolio-level transaction type mapping, intended to provide transparency into the calculation methodology for performance metrics.
- Standardised performance metrics reporting. The Performance Template includes reporting for performance metrics including the internal rate of return, total value to paid-in and multiple on invested capital, with designated breakouts for the relevant gross and net figures.
- Two methodology forms. The Performance Template is available in two versions to support general partners’ varying approaches to fund-level performance calculation methodology — one version is based on itemised cash flows (i.e., the granular method) and the other on grossed-up cash flows (i.e., the gross-up method).
The ILPA recommends that the Performance Template should be used for funds commencing operations on or after 1 January 2026.
The Reporting Template and Performance Template are available here and here, respectively.