IPEV unveils latest reporting guidelines

After two years of work the International Private Equity and Venture Capital Valuation (IPEV) board has unveiled its version of what standardised reporting should look like. 

Both investors and fund managers desire a common language to use in reporting performance figures; however the different styles and strategies across private equity firms have made that goal difficult. 

IPEV asks in its draft guidelines whether it achieved enough flexibility for different types of funds while at the same time providing clear enough language so that GPs could reasonably claim compliance.

Investors have offered their own reporting guidelines via its trade body the Institutional Limited Partners Association (ILPA). The guidelines released by IPEV have considerable overlap with ILPA standards; however, some notable differences exist between the two.

Perhaps most importantly the IPEV guidelines do not offer specific templates or reporting formats around capital call and distribution notices. IPEV argues the content presented to investors should be consistent but that the format used should be driven by individual discussions between GPs and their investors so that specific fund characteristics are taken into account. 

ILPA offers its templates as a way for investors to locate information more easily, leading to less time consuming phone calls between GPs and LPs, said ILPA executive director Kathy Jeramaz-Larson in an interview on the subject. Templates may also allow automation of the task through the right software tools, she said. 

IPEV built its set of standards on the back of guidelines released by the European Private Equity and Venture Capital Association at the latter group’s request. 

IPEV Board member David Larsen of valuations firm Duff & Phelps will accept feedback on the guidelines until 8 June and can be reached at: david.larsen@duffandphelps.com

Nicholas Donato contributed to this report.Â