Report examines how emerging global standards are transforming the future for GPs and LPs
WEST ORANGE, NJ (February 12, 2019)—PEF Services, a leading fund administrator for Alternative Investment Managers, today announced the release of a new white paper entitled “The New Era in Performance Reporting.” Two of the greatest challenges for the private capital markets—and their greatest opportunities—center on transparency and comparability. Investors and regulators alike are demanding new levels of disclosure, but investment firms have struggled to develop the processes required to meet those expectations.
Drawing on PEF’s extensive fund administration expertise, and knowledge on the subject of performance reporting, this white paper highlights how firm managers and their investors can use newly revised global reporting standards to solve private capital’s most urgent challenge—the lack of transparency and comparability—while at the same time highlighting the outsized returns present in private capital markets. It covers:
- Private Capital’s most urgent challenges and opportunities
- The new global standards for performance reporting
- Who should consider the Global Investment Performance Standards (GIPS®) and ILPA standards
- A checklist for firms to take the first steps towards GIPS® and ILPA compliance
“At a macro level, the private capital market as a whole is being held back by the lack of a consistent standard of reporting that makes it difficult for investors to compare performance and firms across liquid and illiquid asset classes,” said Anne Anquillare, CFA, CEO and President, PEF Services LLC. “When used across a broader section of illiquid alternative asset firms, these revised global reporting standards along with improved access to underlying data will definitely grab investors’ attention.”
The convergence of highly motivated investors and a newly transparent illiquid investment landscape holds a promise of unprecedented growth. But to position themselves advantageously during this pivotal moment in the industry’s development, investment firms need to take steps now to develop the processes, capabilities, and technologies required to adopt these new reporting standards. Those that do will see incredible growth opportunities.
“Firms that prove themselves capable of adhering to reporting standards will surpass those that delay their journey toward compliance,” commented Hank Boggio, Chief Revenue Officer, PEF Services LLC. “The future belongs to those who are able to not only generate alpha, but also demonstrate those returns clearly and position them within the full spectrum of investing options.”
This paper is directed to the General Partners (GPs) and Limited Partners (LPs) interested in learning about the benefits inherent in standardization of performance reporting. Performance reporting was the subject of a recent webinar entitled “Private Equity Performance Reporting Hot Topics and the 2020 GIPS® Standards.”
This white paper is the latest in a series in support of PEF’s commitment to deliver valuable thought leadership content.
About PEF Services LLC
PEF Services is the new standard in providing high-value, high-touch Fund Administration services and technology solutions that elevate operational performance to drive and support sustainable growth. Supported by senior professionals with extensive experience in alternative investments, PEF has a 17-year track record of delivering cost-effective, best-in-class solutions to Funds and General Partnerships, including Buyout, Venture, Emerging Managers, Real Estate, Debt, Fund of Funds, Co-investment, SPVs and SBIC. Additionally, the firm’s LP Administration Solutions Group focuses solely on meeting the unique administration and data needs of limited partners investing in illiquid alternative assets. In partnering with PEF, firms increase operational efficiency, reduce and control operating costs, improve focus on core capabilities, and gain access to experts in private capital back office operations. For more information please visit test.pefservices.com.