Private Equity Gets New Reporting Standards

What's happening:

Pensions & Investments reports that the Institutional Limited Partners Association (ILPA) has introduced new standardized templates for private equity firms to report their performance and fees, marking a significant shift from inconsistent industry practices.

Why it matters:

• Transparency: Creates consistency in how private equity firms report returns and fees, filling the gap left by the overturned SEC private adviser rule

• Flexibility: Two-tier system accommodates firms with different reporting capabilities, increasing likelihood of adoption

• Efficiency: Enables investors to make direct performance comparisons across different funds and managers

The Key Moves:

• Standards: Introduces both comprehensive and simplified reporting templates to suit different firm capabilities

• Structure: Consolidates fee reporting categories for internal staff and third-party services

• Implementation: Sets Q1 2026 launch date, giving firms time to adjust their systems

By the Numbers:

• Feedback: Over 100 industry responses shaped the final templates

• Adoption: 80% of private equity firms support Q1 2026 implementation

• Division: Limited partners split evenly between Q4 2025 and Q1 2026 preference

Key Quotes:

• Industry State: "Where we are with performance standardization today I think of as the Wild West" - Neal Prunier

• Strategy: "It's more meaningful to get something that was open to more adoption rather than force one option on the industry" - Neal Prunier

The Wrap:

This industry-led initiative represents private equity's first coordinated effort to standardize performance reporting, balancing investor demands for transparency with practical implementation concerns. Its success could transform how private equity performance is measured and compared.