ILPA template adoption slowdown ‘disappointing’

Adoption of an industry-wide fee reporting template drawn up by the Institutional Limited Partners Association has slowed, disappointing its backers, according to the California Public Employees’ Retirement System’s Private Equity Performance Report.

Pension Consulting Alliance, which authored the report on behalf of CalPERS, said the industry has been slow to adopt the ILPA template in recent months, despite it being embraced by large firms such as Boston-based Advent International, New York-based Blackstone, Fort Worth-based TPG and San Francisco-based Silver Lake.

In total, nine general partners and 58 limited partners have endorsed the template, which is part of the effort by the industry to standardize fee reporting and increase transparency between GPs and limited partners.

ILPA unveiled the template in February 2016, adding sections such as GP compensation and clawback obligations to the association’s existing quarterly reporting standards.

In tandem, several external organizations have developed automated reporting systems to support firms in meeting the template requirements. Last month, Citco launched a web-based ILPA template to automate expense reporting and US-based fund administrator Gen II introduced an ILPA template tool that integrates a specialist alternative asset fund administration platform from DTCC – a US compliance technology platform.

PCA said the limited uptake is “disappointing to supporters of the template” including itself and CalPERS.

The template was drafted by a group of 60 LPs, GPs, service providers and consultants, reflecting feedback from more than 120 individuals and organizations.