The private funds industry is on the verge of a pivotal transition. The Institutional Limited Partners Association (ILPA) has identified Q1 2026 as the launch window for its updated Reporting Template and newly introduced Performance Template. These resources mark a significant evolution in private equity (PE) reporting, modernizing how firms and related funds can standardize, deliver, and interpret fund-level data for investors and stakeholders.
While the ILPA templates are not mandatory, they are widely recognized as best-practice frameworks designed to enhance transparency and comparability in private fund reporting. Institutional investors broadly endorse their use, and some may incorporate them as required components of their standard reporting packages.
For fund managers, the months leading up to Q1 2026 reporting represent a critical period of preparation. The updated Reporting Template is recommended for funds still in their investment period, or newer during Q1 2026, as well as for any funds commencing operations on or after January 1, 2026. The Performance Template is intended for funds launching from the same date, with initial reporting expected after four full fiscal quarters — meaning the first performance templates will be delivered in Q1 2027.
As the Q1 2026 implementation date approaches, fund managers should actively evaluate their internal processes, technology systems, and stakeholder communication strategies to ensure a seamless transition. Early preparation and engagement with general partners (GPs), limited partners (LPs), and service providers can help demonstrate operational sophistication and reinforce their commitment to investor alignment and industry best practices.
Updated Reporting Template
Originally introduced in 2016, the ILPA Reporting Template was designed to encourage consistent and transparent reporting practices across the private funds industry. Before the template’s release, firms faced significant inefficiencies due to the absence of standardized reporting formats. GPs often had to respond to bespoke data requests from LPs, resulting in fragmented and non-comparable information that hindered meaningful analysis.
The 2016 template helped streamline the process and eliminate the need for many individual inquiries by embedding commonly requested data into routine reporting. This improved standardization reduced the need for custom responses and enabled LPs to more easily compare fund performance.
Now, the updated Reporting Template builds on that foundation. Tailored for closed-end private funds, it retains the core structure of the original while introducing refinements that reflect current industry needs and further enhance reporting clarity and consistency.
Key changes include:
- Cash/Non-Cash Flows: Expanded detail now captures offering and syndication costs, placement fees, and partner transfers, providing a clearer view of fund-level activity.
- Management Fees: A new gross-to-net reconciliation process outlines step-by-step netting of rebates, waivers, and offsets, enhancing fee transparency.
- Partnership Expenses: Internal chargebacks are now separately itemized to isolate expenses allocated or paid to the general partner or related parties. External expenses are categorized more granularly, including third-party valuations, investigation fees, and subscription facility costs.
- Portfolio Company Offsets: New offset categories now capture arrangement, origination, and consulting fees.
- Carried Interest: Enhanced reporting includes detailed accounting of carried interest amounts and integrates accrued, earned, and paid carried interest into the Capital Accounts Statement.
- Uniform Reporting Structure: The previous two-tiered reporting framework has been replaced with a single, standardized level of detail for all general partners, promoting consistency with governing documents and accounting standards.
A New Performance Template
In addition to the updated Reporting Template, ILPA introduced an innovative new Performance Template to address a longstanding gap in standardized performance reporting across the private funds industry. This template builds on the Reporting Template’s enhancements and provides a structured framework for calculating and presenting fund-level performance metrics with greater fidelity.
Key features include:
- Cash Flow Transaction Table: A comprehensive breakdown of fund-to-investor transactions, including transaction types, dates, and amounts, offering full visibility into capital movements.
- Transaction Type Mapping: A standardized methodology for categorizing transactions, enabling consistent calculation of key performance metrics such as Internal Rate of Return (IRR), Total Value to Paid-In Capital (TVPI), and Multiple on Invested Capital (MOIC).
- Subscription Facility Impact Analysis: A side-by-side view of performance metrics “with” and “without” the effect of fund-level subscription facilities, helping LPs assess the true economic impact of leverage on returns.
- Return Metrics Integration: Clear mapping of gross and net return impacts by transaction type, improving transparency around how each component contributes to overall performance.
- Dual Methodology Options: The template is available in two formats: one for GPs who itemize fund-to-investor cash flows (the “granular” method), and another for those who do not itemize fund-to-investor cash flows, and therefore need to "gross-up" paid/accrued fees, expenses, and carry.
Understanding the Benefits
Key benefits of the new templates include improved fundraising capabilities and reporting efficiencies that reduce the need for ad hoc requests from investors and other stakeholders. Early indications suggest strong industry interest, with many PE firms planning to implement the new framework sooner than later. Many are eyeing an internal Q1 2026 deadline, providing enough time to make any necessary adjustments while also keeping up with evolving industry standards. Firms that do not prioritize adoption or have plans to adopt the new template risk falling behind competitors as the template becomes a new industry standard.
Fund managers with high concentrations of institutional investors, and those that aspire to attract new institutional investors, should plan to adopt the updated Reporting Template in 2026. The strategic gains to reporting accuracy, compliance efforts, and investor confidence are likely to outweigh the upfront time and resource investments required. Driven by widespread industry demand, the new Reporting Template will likely become the gold standard, especially for firms with institutional investors whose need for enhanced asset management transparency is better captured in the updated version of the template.
Firms that are proactive in adopting the updated template will likely position themselves as more attractive managers for today's discerning investors. Early adoption demonstrates operational sophistication and forward-thinking management, leading to competitive advantages in LP and investor relations.
Adoption and Implementation Considerations
The advantages of the new ILPA templates are clear: investors want to see reporting standards keep pace with market changes and best practices. But even if the benefits are clear, the road to integration will not look the same for every PE firm.
Some firms may be hesitant to adopt the new template due to their lack of familiarity and the work required to get up to speed. Others may be implementing the templates for the first time and may feel intimidated by the scope of necessary changes. There may also be firms that feel reluctant to spend the money or time required to bring their technology tools in line with the new templates.
While these concerns are legitimate, firms should not delay integrating the new templates. Collaborating with fund administrators as soon as possible can help firms ensure they do not fall behind their peers. Firms that do not have access to a fund administrator to help guide this process might consider enlisting a knowledgeable third party that can help bridge the gap.
An adoption roadmap should factor in the requisite people, processes, and technology needed to fully integrate the new Reporting Template. Employees who are not familiar with the Reporting Template or who have grown accustomed to its previous version may benefit from additional education. Finally, firms should take stock of their existing technology stack. Some tools, but not all, come with easy integration functions, allowing for a more seamless transition to the new templates. Tools without easy integration methods will need to be manually adjusted to collect and structure data in accordance with the new templates’ requirements.
Firms should also develop a strategy for communicating their adoption of the new template to investors. Showcasing the firm’s improvements from the updated template is core to capturing the full value of adoption. In some cases, firms may even consider hosting a webcast or other live discussion forum, where they can address how the new reporting template will enhance stakeholder visibility.
How BDO Can Help
The new ILPA Templates represent a significant standardization advancement in private equity reporting. With widespread intent to adopt, firms are signaling they understand the benefits — but some may find they need help evolving their internal operations to successfully and proactively update their processes.
BDO can offer implementation support for firms seeking to enhance their reporting. Our experts have deep familiarity with the ILPA templates and can help firms evaluate their current accounting systems and processes to scope out necessary changes. We can also provide guidance on building an adoption roadmap, assisting firm leaders in weighing specific policy decisions related to the templates and educating employees about the updated template.
Additionally, our experienced professionals can guide firms through any relevant technology integrations, helping them make the most of their automation tools to reduce the need for manual processes, enhance reporting accuracy, and bring legacy process in line with today’s standards.
Interested in learning more about how your firm could benefit from the new ILPA templates?