Many private equity fund managers think there will be an increased drive on the part of LPs for more transparency on portfolio company performance over the coming year, according to an Intertrust poll.
But the drive for transparency more broadly is already happening. Intertrust’s survey of 150 private equity managers shows what kinds of information LPs are increasingly demanding.
The survey also polled managers on what reporting improvements they are prioritizing (managers were asked to select all options that applied). Sixty-six percent said they are working on providing greater transparency in the level of information supplied, including using International Limited Partners Association reporting templates.
Fifty-six percent said they are prioritizing technology that gives LPs “anytime access to financial information via a dynamic portal.” Thirty-four percent said that enabling reports to be more frequent than quarterly is a priority.
Reducing LPA timelines for valuations and quarterly reporting to 45 days instead of 90 days was among the top goals for 27 percent of respondents, and 26 percent said they are aiming to produce customized templates dealing with side letter requests.
Private Funds CFO previously covered the ESG-related highlights from Intertrust’s survey, which indicated that fund managers expect ESG standardization in three to five years.