On January 22, 2025, the Institutional Limited Partners Association (ILPA) published the final deliverables of its Quarterly Reporting Standards Initiative (QRSI), concluding an intensive effort launched in 2024. This release includes the Updated Reporting Template, two Performance Templates, and accompanying guidance. ILPA has undertaken this effort to improve transparency and consistency in quarterly fund reporting while aligning with the now-vacated US Securities and Exchange Commission's ("SEC") Quarterly Statement Rule under the Private Fund Advisers (PFA) framework.
At Suntera Fund Services, we view this update as an important step in standardizing industry reporting. If broadly adopted, it can create unique reporting challenges for fund managers and General Partners seeking to raise institutional capital without the proper infrastructure to produce the new templates.
Below, we provide a comprehensive overview of the new templates and highlight specific changes fund managers should be aware of.
Implementation Timelines
The new templates apply to private equity funds still in their investment period as of Q1 2026 and new funds launching on or after January 1, 2026. ILPA has outlined the following timing:
- Updated Reporting Template—This template begins for funds active in Q1 2026, with reporting starting after the first full quarter or within 18 months of the initial close (whichever is earlier).
- Performance Templates—These templates apply to funds launched in 2026, with data capture starting in Q1 2026 and initial reporting due in Q1 2027.
ILPA's intent with these templates is to supplement a fund's existing reporting package and align it with governing documents, accounting policies, and fund structure decisions already in place.
Enhancements to the Reporting Template
The Updated Reporting Template incorporates several changes when compared to the 2016 version, including:
- Additional capital items include offering/syndication costs, placement fees, and partner transfers.
- Separate disclosure of expense types paid or allocated to the investment adviser or related persons, including those associated with operations, administration, accounting, valuation, IT activities, legal, and regulatory.
- Disaggregated or additional expense types paid or allocated to unrelated third parties, including fees and interest associated with subscription facilities and other forms of credit.
- Additional management fee offset categories and gross-net management fee reconciliation.
- Additional accrued carried interest roll-forward categories (e.g., realized, unrealized, and paid) and incorporation of the carried interest reconciliation into the body of the capital account statement.
- Portfolio companies/investments pay or allocate additional fees, allocations, and reimbursement categories to the investment adviser or related persons.
ILPA has removed the two-tiered structure for disclosure details for partnership expenses, offsets, and portfolio company fees to provide a uniform level of detail to investors.
For funds no longer in their investment period as of January 1, 2026, ILPA allows them to continue using the 2016 template or adopt the new template.
Performance Templates: Two Methodologies, One Goal
ILPA has issued two versions of the Performance Template to account for different calculation methodologies:
- Granular Methodology (preferred): This method requires a detailed classification of capital and credit line drawdowns. It is ideal for funds with clear investment-related cash flows.
- Gross-Up Methodology: Suitable for fund structures where granular classification isn't feasible (e.g., fund of funds). This methodology uses aggregated capital and adjusted drawdowns for gross performance calculations.
The Final Performance Template requires, irrespective of calculation methodology:
- Fund performance table – calculations between the fund and all fee-paying limited partners in aggregate (based upon the included cash flow table, which incorporates a classified statement of contributions, distributions, and, for unlevered performance, subscription line of credit drawdowns and paydowns, and ending NAV, adjusted as appropriate for accrued fees, expenses and performance-based compensation for gross performance):
- Gross levered investor IRR (recommended)
- Gross unlevered investor IRR (recommended)
- Net unlevered investor IRR
- Net TVPI (distributions to investors plus NAV divided by investor contributions for any purpose)
- Gross MOIC/TVPI (recommended) (granular methodology: distributions to investors plus NAV, adjusted for accrued fees, expenses, and performance-based compensation, divided by investor contributions for investments or, for the gross-up methodology: distributions to investors plus NAV, adjusted for fees, expenses and performance-based compensation incurred, divided by investor contributions irrespective of utilization)
- Portfolio performance table – based upon transactions between the fund and its portfolio investments classified by realized, unrealized, and total portfolio (i.e., performance results only; no investment cash flow table presentation is required):
- Gross MOIC (distributions from investments plus unrealized investment value divided by contributions to investments) and, to comply with the Marketing Rule:
ILPA recognizes and accommodates variation in calculation methodology with disclosure, including treatment of recallable distributions and recycling investment proceeds.
Our Support and Guidance
At Suntera Fund Services, we understand the operational and strategic considerations of adopting new regulatory and industry standards. Our team is actively supporting clients in:
- Mapping and adapting general ledger systems to align with the new reporting structure.
- Implementing fund-level gross performance presentation tailored to ILPA guidance.
- Developing fund-specific narratives and disclosures to enhance transparency.
- Advising on methodology selection and data capture approaches for the Performance Templates.
The full QRSI Templates and guidance materials can be accessed via ILPA’s resource library: ILPA Resource Library – QRSI Templates.
For more information about this topic, please get in touch with Michael Von Bevern using the details below.
Visit our funds overview page for information on our comprehensive services.
Key Contacts:
Michael Von Bevern
CO-MANAGING DIRECTOR, AMERICAS
View Bio | Email Michael | LinkedIn
