Meeting The New Standard
- ILPA Reporting
Meeting the New Standard:
ILPA Reporting in 2025 and Beyond
Over the course of the last decade (and seemingly set to continue into the foreseeable future), there has been unprecedented growth in the flow of capital into the alternative investment sector, and in particular, into private capital. With that, industry participants, advisors, observers and even regulators have all called for greater transparency, accountability, and standardization of investment managers in respect of financial information, reporting and data. The Institutional Limited Partners Association (ILPA) have helped to drive the call for industry standardization into practice via the guidelines established in the ILPA Reporting Template regime.
While the ILPA reporting regime has established an important industry standard, effective adoption of and compliance with the ILPA reporting requirements has required investment managers and the Third-Party Administrators (TPAs) that service them to invest in maturing their operations and modifying their technology. The release of the redefined ILPA Reporting Template in January 2025 has further shifted the landscape. The new requirements require Funds to break out internal chargebacks while providing detailed categorization of external partnership expenses, such as offering and syndication costs, placement fees, insurance, and subscription facility fees. The new template replaces the 2016 template (which is relevant for funds still in their investment period during Q1 2026) and is applicable to new funds as of January 1, 2026. Furthermore, the newly released templates track performance metrics like IRR, TVPI/MOIC with clear cash flows mappings and separates gross and net figures, including or excluding the impact of subscription facilities.
The Challenge: Beyond Compliance to Excellence
The reporting complexity of the ILPA templates requires sophisticated coordination across systems, internal infrastructure capable of generating ILPA-compliant outputs, and accuracy across varying reporting periods and fund structures. As relates to TPAs, these challenges reveal a divide between those focused on check-the-box compliance and those driving real business improvement through enhanced operational effectiveness.
Successful TPAs understand that the ILPA reporting regime requires a fundamental commitment to operational excellence and long-term relationship building. This approach stands in stark contrast to the cost-cutting mentality that has driven many TPAs to offshore critical functions, often at the expense of quality and client service.
ILPA expertise requires specialized knowledge across client service, operations, and technology departments. True understanding begins with comprehensive familiarity across all ILPA templates combined with deep industry experience. Best-in-class TPAs should possess strong relationship-building capabilities, taking a proactive role in following industry changes and positioning themselves as strategic advisors rather than passive service providers. This human capital advantage enables the most effective TPAs to guide clients through forthcoming developments and quickly adapt to changing reporting environment and evolving expectations.
Operational Alignment Across Teams and Technology
Process excellence forms the foundation of ILPA reporting success. Leading TPAs implement systematic data collection protocols, multi-layered validation procedures, and advanced reconciliation processes to ensure consistent quality outputs. Advanced technology automates template population via reporting engines, delivering customized LP responses while maintaining consistent formatting. TPAs that are free of technical debt can deploy these capabilities without the limitations and integration challenges that burden legacy operating systems. This technological agility becomes increasingly valuable as ILPA standards continue to evolve.
The most effective TPAs invest in solutions that integrate information from portfolio companies, general partners, and fund custodians while maintaining automation and granular audit trails. Building detailed controls minimizes errors and creates transparency for LPs, ensuring data integrity across all reporting templates.
The Path Forward
ILPA standards have shifted from being a discretionary best practice to a baseline expectation for investment firms who wish to continue to maintain/secure existing/new LP mandates. One thing that has become clear is that the depth and quality of a mangers approach to continuous operational improvement and effectiveness will continue to distinguish truly forward-thinking managers in the market. TPAs who use ILPA standards to showcase operational excellence, strengthen client trust, and improve service quality are well-positioned for long-term growth.
The private capital industry increasingly recognizes that sophisticated institutional reporting requires innovative operational capabilities. TPAs who combine ILPA expertise with strong client service, quality delivery, and modern technology are well-positioned to succeed as the private capital market evolves. In an industry built on trust and performance, operational excellence backed by advanced technology remains the ultimate competitive differentiator.
Argo Fund Solutions Approach
ILPA reporting is not an add-on at Argo, it is hardwired into our model. We’ve built our model around data governance, granular bookkeeping, and process automation to ensure accuracy, transparency, and scalability across every fund we administer. By embedding ILPA requirements directly into our operating framework, we eliminate the distinction between compliance and value creation: every client receives ILPA outputs as part of our core service. This approach not only positions Argo ahead of evolving industry standards, but also reinforces our commitment to delivering precision, transparency, and trust in every reporting cycle.