Market Overview

IPEV Board Releases Investor Reporting Guidelines

Share:

BRUSSELS, Belgium, Oct. 29, 2012 (GLOBE NEWSWIRE) -- The International Private Equity and Venture Capital Valuation Guidelines Board (IPEV Board) today released its Investor Reporting Guidelines (IRG). A comprehensive and globally applicable set of disclosure principles, the IRG are designed to provide guidance to General Partners (GPs) as they report information to their Limited Partners (LPs) with greater transparency, consistency and comparability; the IRG may be viewed in full at www.privateequityvaluation.com.

To support its definitive guidance on the application of Fair Value in the global private equity industry (including investments in early stage ventures, buyouts, infrastructure, mezzanine debt and similar investments in growth or development capital), the IPEV Board assumed the task and responsibilities for the continuous development of reporting guidelines from the European Private Equity and Venture Capital Association (EVCA) and developed the new IPEV Investor Reporting Guidelines; the new IPEV IRG are the culmination of more than two years of extensive review and consideration of contributions from investors, fund managers and other stakeholders – thus representing balanced input from both the GP and LP communities.

"I trust that our Investor Reporting Guidelines will greatly facilitate greater consistency and transparency in communications from GPs to LPs," said Emile Van Der Burg, Chairperson of the IPEV Board, Senior Advisor to DB Private Equity and Board Member of GIMV. "I am particularly proud of the close collaboration between GPs, LPs and service providers to enhance best practices for this dynamic and increasingly important industry."

"The on-going dialogue amongst LPs, GPs and other service providers and organizations, including the Institutional Limited Partners Association (ILPA), created the strong foundation on which the IPEV IRG were built," said Bill Hupp, IPEV Board Vice Chair and Chief Financial Officer Adams Street Partners. "In broadening the EVCA guidelines to a global standard we have been able to reference previous work completed by other industry groups (AVCAL, ILPA, and PEIGG); we intend that the principles espoused by the IPEV IRG work alongside these efforts to improve investor reporting for our industry."

The IPEV IRG are principle-based, focusing primarily on what information is most important to investors – information that is not typically included in GAAP or Statutory Financial Statements. To accommodate differences between various fund structures and investment styles, the IPEV IRG do not mandate a specific format for GPs to deliver information consistent with the IPEV IRG.

"The IPEV IRG identify essential information that GPs should provide to LPs, yet they allow for an appropriate degree of flexibility in how that information is reported," said David Larsen, IPEV Board Member and Managing Director at financial advisory and investment banking firm Duff & Phelps. "They accommodate differences among funds while still achieving our paramount objective, which is ensuring consistency and comparability of information critical to LP investors."

Notes to Editors:

The IPEV Investor Reporting Guidelines address the need for reporting information beyond requirements of financial statement reporting, taking into account the need for flexibility among various types of funds and fund managers. The IPEV IRG have been prepared with significant input from LPs, GPs, and service providers.

Separate and distinct from the IPEV IRG, IPEV Valuation Guidelines address the need for greater consistency and comparability in assessing Fair Value across the private equity and venture capital industry compliant with IFRS, US GAAP and other accounting principles. Updated IPEV Valuation Guidelines will be released in the coming months.

About IPEV

In October 2005, IPEV was created as an independent body and charged with maintaining, promoting, monitoring, and updating the Valuation Guidelines, as well as providing guidance on the application of the Guidelines to all worldwide stakeholders in the Private Equity and venture Capital industry—assisting practitioners, investors, regulators and auditors. More information can be found on the IPEV website at www.privateequityvaluation.com.

The private equity and venture capital associations supporting IPEV include:

AFIC - Association Française des Investisseurs en Capital

AIFI - Italian Private Equity and Venture Capital Association

AMEXCAP - Mexican Private Equity Association

AMIC - Moroccan Private Equity and Venture Capital Association

APCRI - Portuguese Private Equity and Venture Capital Association

ASCRI - Spanish Private Equity and Venture Capital Association

ATIC - Tunisian Venture Capital Association

AVCA - African Venture Capital Association

AVCAL - Australian Private Equity and Venture Capital Association

AVCO - Austrian Private Equity and Venture Capital Organization

BVA - Belgian Venture Capital & Private Equity Association

BVCA - British Venture Capital Association

BVK - German Private Equity and Venture Capital Association e.V.

CAPE – China Association of Private Equity

CVCA - Canada's Venture Capital and Private Equity Association

CVCA - China Venture Capital Association

CVCA - Czech Venture Capital and Private Equity Association

DVCA - The Danish Venture Capital and Private Equity Association

EMPEA - Emerging Markets Private Equity Association

EVCA - European Private Equity and Venture Capital Association

FVCA - Finnish Venture Capital Association

HKVCA - Hong Kong Venture Capital Association

HVCA - Hungarian Venture Capital and Private Equity Association

ILPA - Institutional Limited Partners Association

IVCA - Irish Venture Capital Association

LAVCA - Latin American Venture Capital Association

LPEq - Listed Private Equity

LVCA - Latvian Venture Capital Association

MENA Private Equity Association

NVCA - Norwegian Venture Capital & Private Equity Association

NVP - Nederlandse Vereniging van Participatiemaatschappijen (Dutch Private Equity and Venture Capital Association)

NZVCA - New Zealand Private Equity and Venture Capital Association

PSIK - Polish Private Equity and Venture Capital Association

Réseau Capital - Québec Venture Capital and Private Equity Association

RVCA - Russian Private Equity and Venture Capital Association

SAVCA - Southern African Venture Capital and Private Equity Association

SECA - Swiss Private Equity and Corporate Finance Association

SLOVCA - Slovak Venture Capital Association

SVCA - Singapore Venture Capital and Private Equity Association

SVCA - Swedish Private Equity and Venture Capital Association

CONTACT: Stephen Kempen (Apax Partners) - Europe email: Stephen.kempen@apax.com or David Larsen (Duff & Phelps) - US Tel: (001) 415 693 5330 email: david.larsen@duffandphelps.com Didier Guennoc, IPEV Secretary Tel: +32 486 62 99 78 email: didier.guennoc@ldspartners.com
View Comments and Join the Discussion!