Tech solutions will drive GPs to use ILPA template

TowerBrook Capital Partners and Phoenix Partners have endorsed the template in the past three months.

Uptake of the Institutional Limited Partners Association’s fee-reporting template among general partners is expected to increase as more tech solutions to facilitate its use become available, the association told pfm.

Another two firms, Phoenix Partners and TowerBrook Capital Partners, have endorsed the template in the past three months, bringing the total number of GP backers to 18, ILPA said. This is considerably fewer than the 75 investors that have backed the template since its inception.

The ILPA said it was working on its implementation with GPs that have not yet adopted the template and will continue to meet with the those that “have an interest but are lacking resources to make a switch.”

“The more third-party technology providers and fund administrators who offer solutions, the better,” a spokeswoman for ILPA said, adding it had seen that number grow.

Fund administrators Gen II and Citco have already launched template-friendly platforms which simplify the transfer of the data between LPs and GPs. Firms including PEF Services and Colmore are also working on platforms, according to ILPA.

Overall the association is “pleased” with the adoption rate among GPs.

“While we can identify approximately 160 GPs filling out the template, we estimate the actual number is much higher, though that number is more difficult to capture,” the spokeswoman said.

The ILPA fee reporting template was published in February 2016 and is designed to increase transparency around the fees and expenses private fund managers charge their clients. Among its GP endorsers are Oaktree Capital, Permira and Riverstone.