What should a quarterly LP update include?

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A good update lets you answer three questions without a call: what the fund owns and what it is worth, how the fund is tracking against the plan it was raised on, and what changed this quarter. It reports the bad news alongside the good, in the same place. If you have to ask for the basics each quarter, that tells you something about how the firm runs.

What it should contain

  • Fund summary. Commitments, capital called, distributions, remaining commitments and the current performance figures, net of fees and carry.
  • Capital account. Your own contributions, distributions and ending balance.
  • Portfolio schedule. Each company with cost, current value and ownership, and how values were set.
  • Plan comparison. Deployment pace, number of companies, ownership and reserves against what the manager described when raising. See How to tell if a venture fund is deploying on plan.
  • Material developments. New investments, follow-ons, write-downs, exits and significant company events.
  • Fees and expenses. What was charged this quarter and to date. ILPA's reporting templates set out a standard format.
  • Firm matters. Team changes, conflicts, and anything that touches key-person terms or the LPAC.

How to read one

Look first at whether the fund still resembles the plan. A change in strategy can be the right call, but it should be named and explained, not discovered in the portfolio schedule. Then look at write-downs and markdowns, and whether they are reported as clearly as markups. Finally, check consistency over time: the same metrics, defined the same way, quarter after quarter.

When something is missing

Emerging managers sometimes produce lighter reporting early on, often because they have not yet engaged a fund administrator. That can be fixed. What deserves attention is selective reporting, changing definitions or long gaps. It is reasonable to ask for a standard template and a delivery date.

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