Key insights
- Updated reporting and performance templates introduced by the Institutional Limited Partners Association (ILPA) aim to enhance global standardization and transparency in private capital firms.
- GPs can use ILPA reporting to enhance capital raising efforts by promoting transparency and building trust with LPs.
- Leveraging technology and fund administration partners can significantly streamline the compliance process, reducing manual reporting burdens and enhancing data accuracy for ILPA reporting.
Need help adopting ILPA’s standardized reporting templates?
The Institutional Limited Partners Association (ILPA) has introduced an updated reporting template and new performance templates to improve global standardization and transparency for investment funds.
Initially developed in response to the Securities and Exchange Commission’s Private Fund Advisers (PFA) rule, ILPA shifted its focus to industry collaboration after the rule was vacated by the U.S. Fifth Circuit.
Review some key takeaways from the templates to better understand how to maintain compliance with ILPA reporting standards.
Updates to the ILPA Reporting Template
While this template is not net new, it’s the first update since 2016. The template still provides a net asset value (NAV) and commitment roll forward for the individual limited partner (LP), the general partner (GP) allocation, and total fund for three periods: quarter to date, year to date, and inception to date.
Notable updates to the template include:
- A breakout of internal chargebacks from external partnership expenses to isolate expenses paid by the fund to the GP, affiliates, internal staff, or related persons
- More detailed cash and non-cash flows to capture offering/syndication costs, placement fees, and partner transfers
- More granular external partnership expenses in key areas like third-party valuations, investigations, examination fees, and subscription facility interest
- Updates to the carried interest section
The updated ILPA reporting template is intended to replace the 2016 version on a go-forward basis for funds still in their investment period during Q1 2026 or for funds commencing operations on or after January 1, 2026.
Complying with ILPA reporting standards isn't just about ticking boxes. It's about transparent, consistent, and reliable reporting that builds confidence and trust.
New ILPA Performance Template
This template is the first of its kind, and there are two template options available for GPs to choose from: fund or portfolio level. The goal is to standardize gross and net performance metrics’ calculation methodologies by providing a framework for capturing itemized cashflows.
Unlike the reporting template, this is a fund level template, not specific to individual LPs. The Performance Template should be used on a go-forward basis for funds commencing operations on or after January 1, 2026, with the first deliverable to LPs Q1 2027.
Why ILPA compliance matters
ILPA’s primary goal is to drive standardization, transparency, and comparability across the private markets. While increased reporting requests can feel daunting for GPs, LPs benefit from knowing how their money is being put to work, and GPs benefit by building trust among investors.
To attract institutional LP capital, GPs need the ability to meet ILPA reporting standards, often relying on their fund administrator and technology solutions to deliver timely and accurate reports.
The hidden cost of manual reporting
Manually reconciling information and checking data accuracy requires significant time and back-office resources. Reporting is a challenging undertaking for GPs when fund accounting, CRM, and investor reporting systems don’t connect.
Closing the gaps is a cumbersome process filled with updating data entries and standardizing spreadsheets. The inefficiencies of manual reporting can leave GPs struggling to meet reporting deadlines and deliver the transparency their investors need.
When using a fund administrator, the same principles apply — if the administrator is using multiple systems reconciling this data back and forth, errors and timing delays are inevitable.
Establishing smooth operations offers GPs the ability to scale and spend more time on strategic decision making and data analysis.
The role of technology in the compliance journey
Achieving ILPA compliance is fundamentally a data infrastructure challenge, but GPs can lean on technology and fund administration partners to get their data in better shape. Software solutions play a critical role in reducing the data burden by providing tools to centralize disparate data sources and keep information easily accessible and organized.
Fund administrators add checks and balances to support data accuracy. Both partners can automate the classification and tagging of fees and expenses while tracking expenses and cash flows to cut manual efforts, reduce errors, and provide the granularity needed for ILPA reporting.
Streamlining processes across data collection and reporting can help GPs and fund administrators populate ILPA templates efficiently while maintaining data accuracy and integrity.
ILPA reporting as a strategic advantage
In a competitive and challenging fundraising environment, GPs can use ILPA reporting standards as a key differentiator in their capital raising initiatives. LPs are increasingly favoring transparent firms.
Making the reporting process easier helps build trust between investors, which can lead to greater opportunity. The long-term benefits of internal data hygiene include smooth ILPA reporting, audit readiness, and fewer investor inquiries.
How CLA and Allvue can help with ILPA reporting standards
In Part 2 of this article series, we’ll explore next steps for organizational readiness and how to start preparing. In Part 3, we’ll dive into how artificial intelligence can transform ILPA compliance — from document parsing to automated reporting — and how firms can build for the future.
CLA works with Allvue to offer a full suite of fund administration services backed by dynamic software to help your firm scale operations efficiently, meet ILPA reporting standards, and deliver investor transparency.
Learn more about how Allvue’s dedicated private markets platform can help you manage data more effectively, automate workflows, and create custom reports.