White Paper: The Private Equity Managers Path to Compliance With the GIPS Standards

Regulators continue to push for greater standardization and transparency in performance reporting and marketing of private funds. The SEC's recent revisions to the Marketing Rule and the proposed private fund rule changes impact most GPs directly. Meanwhile, recent FINRA guidance about calculating and presenting IRRs applies to the placement agents and bank platforms often utilized in the fundraising process, which ultimately are pushed down to the GPs as well.

A common denominator in each of these is a reference to, or reliance upon, the Global Investment Performance Standards (GIPS^®) to provide the underlying performance methodology framework. These standards are well positioned to assist private fund managers with establishing a framework for calculating and presenting performance results to meet these increased demands. 

Our white paper provides in-depth information about how private equity managers can benefit from and claim compliance with the GIPS standards.

Topics covered:

• Evolution of the GIPS Standards for Private Equity
• Increasing Demand for GIPS Compliance
• Fundamentals for Claiming Compliance
  • Firm Definition
  • Definition of Discretion
  • Policies and Procedures
  • Composites and Pooled Funds
• Input Data and Calculation Methodology
  • Input Data Requirements and Fund IRR Calculations
  • Subscription Lines of Credit
• GIPS Reports

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How we help

We have a variety of services to help private equity firms comply with advertising regulations and performance requirements. 

• GIPS Feasibility Study: GIPS standards feasibility study to quantify the scope and effort to become GIPS compliant. This service assists a firm in identifying the gaps to GIPS compliance.
• GIPS Compliance and Verification: GIPS compliance consulting and verification to provide internal and external assurance.

Please reach out to your ACA consultant or contact us if you want to find out how ACA can help your firm meet  performance reporting requirements.

Listen to our on demand webcast

Our recent webcast is a great accompaniment to the information in this white paper. Listen as we outline how GIPS compliance can help your firm meet increased scrutiny around the presentation of performance. Listen now