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2025 ILPA Reporting Changes: Everything You Need to Know

Posted on May 21, 2025

In January 2025, the Institutional Limited Partners Association (ILPA) released major updates aimed at improving how private equity firms report financial and performance data. These include a significantly revised Reporting Template and a new Performance Template, both designed to increase standardization, transparency, and comparability across the private markets.

For General Partners (GPs), these templates represent more than formatting tweaks. They signal rising expectations from Limited Partners (LPs) for clear, consistent, and comprehensive reporting.

With recommended implementation beginning in Q1 2026, now is the time for private equity and venture capital firms to begin preparing.

 

Why These Templates Matter

ILPA’s new guidance responds to long-standing LP concerns over inconsistent disclosures and unclear methodologies. While not regulatory in nature, ILPA standards are highly influential. Many institutional LPs already expect reporting in line with ILPA’s templates.

The goal is simple: help LPs better understand how their capital is used and how fund performance is measured. For GPs, aligning with these templates strengthens transparency and builds trust with current and future investors.

Read ILPA’s full announcement here.

 

Key Enhancements to the Reporting Template

The updated ILPA Reporting Template focuses on improved fee and expense disclosure. Notable changes include:

  • Internal Chargebacks: GPs must now break out payments made to themselves or related parties. This helps LPs distinguish between fund-level expenses and GP compensation.
  • Detailed External Expenses: Expenses paid to third parties must be categorized more granularly, allowing better alignment with general ledgers.
  • Uniform Disclosure Across Funds: ILPA calls for a consistent level of detail from all GPs, making reports easier to compare across funds and strategies.

These enhancements reflect the industry’s shift toward greater accountability and data clarity—beneficial for both LPs and GPs.

 

A First for Performance Reporting

The newly introduced Performance Template provides a standardized way to report performance metrics like IRR, TVPI, and DPI. This new template aims to resolve inconsistencies in how GPs present fund returns.

Key features include:

  • Cash Flow and Transaction Mapping: LPs can see how individual cash flows contribute to performance calculations.
  • Impact of Subscription Facilities: GPs must now present IRRs and multiples with and without the effect of fund-level credit lines.
  • Two Methodologies: GPs can choose between a granular (itemized) method and a gross-up method for calculating fund-level returns—both accepted under the ILPA framework.

This structure allows LPs to evaluate performance on a level playing field and reduces the need for time-consuming reconciliations.

 

Implementation Timeline and Next Steps

ILPA recommends adoption starting in Q1 2026, but many LPs may begin requesting early compliance. Transitioning may require adjustments to internal systems, reporting tools, and third-party workflows.

To get ahead of the curve, GPs should:

  1. Review Current Reporting: Map existing templates to the ILPA versions and identify any data or formatting gaps.
  2. Coordinate With Service Providers: Engage your fund administrator, auditor, and legal team early to avoid last-minute challenges.
  3. Engage LPs: Proactively discuss reporting expectations and timelines with your investors.
  4. Update Internal Policies: Ensure your financial systems and governance processes support the new level of detail and transparency.

 

How Pinnacle Can Support You

At Pinnacle Fund Services, we’re actively helping private equity clients with their ILPA reporting standards. From template mapping to system implementation, our team ensures your transition is smooth, efficient, and LP-ready.

Whether you’re adopting one template or both, we’ll work with your team to align reporting with ILPA’s expectations and investor needs.

 

Conclusion

ILPA’s updated templates represent a new era in private equity reporting. Early adopters will stand out for their professionalism and transparency—key qualities in a competitive fundraising environment.

Contact David Smith at dsmith@pinnaclefundservices.com or 1-604-559-8921 to learn how Pinnacle can support your ILPA reporting transition and enhance your LP communications.