CalPERS Endorses New ILPA Fee Reporting Template

The California Public Employees’ Retirement System (CalPERS) announced that it has endorsed the use of the Institutional Limited Partners Association’s (ILPA) new fee reporting template for private equity general partners.

"CalPERS is committed to the highest levels of transparency and openness," said Ted Eliopoulos, CalPERS Chief Investment Officer. "We welcome the release of this template and I commend ILPA for their work. Adoption of the template by all limited partners is an important step toward bringing uniform reporting to the private equity industry."

CalPERS intends to request that its private equity fund managers comply with the reporting practices as illustrated by the ILPA Fee Reporting Template, and the related guidance produced by the ILPA Fee Transparency Initiative, including:

• Quarterly reporting by managers that detail at the individual Limited Partner level periodic changes and balances on a year-to-date and since inception basis for:
  • Management fees and any offsets applied
  • Partnership expenses
  • Carried interest paid and accrued

• Quarterly reporting of certain monies collected by fund managers, including:
  • Fees not subject to offset
  • Fees collected by related parties or affiliates

• Disclosure on the occurrence of routine or non-routine regulatory examinations, and information on how to review the results of such examinations

CalPERS staff identified a need to better track and report program expenses, carried interest, and other portfolio and fund level data in its private equity investments in 2011. This led to the creation of the Private Equity Accounting and Reporting Solution (PEARS) system, a proprietary tool that allows CalPERS to comprehensively report carried interest and other information from its private equity investments. The new ILPA template will be added as a source of information for PEARS.