The Institutional Limited Partners Association has launched a portfolio company metrics template to enable GPs to provide more consistent and comparable information to LPs regarding portfolio company development.
The LP industry group says it answers the need “for a more efficient and comprehensive method of reporting portfolio company metrics for buyout and growth equity funds.” The template, which ILPA says was designed specifically for buyout and growth equity funds, has been released for public comment, which it hopes to receive by September 28.
The template standardizes the request by LPs for portfolio company information, which historically has been provided on a customized basis. ILPA says the template can help GPs and LPs measure portfolio risk exposure across geographies, sectors and strategies; value creation across individual funds, as well as the portfolio; and LPA and side-letter compliance and attribution for significant changes in company valuations.
“ILPA continuously seeks ways in which we can make reporting in the PE industry more fulsome and less customized,” said Matthew DeMatteis, director of research at ILPA. “Portfolio company data is another example of metrics that can easily be standardized so that LPs and GPs do not have to reinvent the wheel every time there’s an information request.”
ILPA developed the template with a working group of 30 organizations, including LPs, GPs and service providers.