Industry forges first ever data standard

A group of GPs, LPs and service providers finished defining some key industry terminology that will make it easier for their reporting systems to communicate with one another.

The consortium, The AltExchange Alliance, formed in May to come up with a single standard for data sharing in private equity – and promote its use by all parties.

The first phase of AltExchange’s mission is now complete, with “core quarterly data” terms like capital accounts, schedule of investments, and cash flow activity now defined under a common industry language, the group said in a statement on Tuesday.

The first terms standardized now enter a testing phase due to be completed in early 2014. Next year, the alliance will also begin phase two of its mission, which involves standardizing language more connected to portfolio company information reporting.

“The publication of the Group One standard is an industry milestone,” said Kristine O'Connor, chief financial officer at Franklin Park, who added the cooperation between the GPs and LPs on the initiative was “remarkable.”

The alliance now has some 45 member firms, including private equity heavyweights The Carlyle Group and CVC Partners.

GPs, LPs and others interested in joining the alliance can request information by emailing info@altexchange.com.