The AltExchange domain standards mark the industry’s first attempt to unify and codify the presentation of financial information by fund managers to Limited Partners (LPs) in an easily consumable format.
London and New York, March 30, 2016 – The AltExchange Alliance today released a new digital format for comprehensive reporting of private equity partnership fees and expenses information. The new standard mirrors the information captured by the Institutional Limited Partners Association’s (ILPA) recently released Reporting Template and was developed in conjunction with the ILPA, an AltExchange member.
This development reflects the ongoing commitment by stakeholders from across the industry to promote and adopt financial reporting standards. The AltExchange data domains build upon the ILPA’s reporting guidelines first issued in 2011, including the Reporting Template, which is the first deliverable of the ILPA’s Fee Transparency Initiative launched in May 2015. AltExchange’s open architecture reporting format allows General Partners (GPs), LPs and service providers to efficiently exchange portfolio information in a uniform financial reporting process.
To facilitate the communication of the information included in the ILPA Reporting Template, the AltExchange Alliance has issued a new version of its Group One Standard, released in 2013 as the industry’s first ever detailed template for the exchange of data related to capital accounts, schedules of investments, and cash flow activity. With the updated Standard, GPs and LPs will have the possibility to exchange information on fees, expenses and carried interest in an XML format that can be validated by the AltExchange Validation Platform. The AltExchange Validation Platform will provide support to fund managers to generate valid files and will also support AltExchange Members that are LPs to view such files in a readable Excel format.
ILPA’s Managing Director of Industry Affairs Jennifer Choi welcomed the enhancement of the AltExchange Data Standard. “Facilitating the delivery of standardized information, as embodied in the ILPA Reporting Template, has always been the ultimate goal of the Transparency Initiative. The work of the AltExchange coalition to standardize and most importantly digitize this data has been invaluable to ILPA’s efforts to encourage broad adoption of a more uniform approach to reporting. AltExchange is an excellent resource for any institution interested in adopting the ILPA Reporting Template.”
“I am proud of the collaborative milestones achieved by AltExchange as the industry has come a long way with regard to developing reporting standards,” said Joncarlo Mark, AltExchange Chairman. “Most practitioners agree that a single reporting protocol will streamline a somewhat archaic financial reporting process and result in efficiency gains that both save money for GPs and LPs and allow investors to better analyze their holdings and make wiser investment decisions.”
The AltExchange Alliance, a non-profit private equity industry group formed in 2012 and comprised of General Partners, Limited Partners and Service Providers, is chartered to define, maintain and promote a single data reporting standard. The Alliance has developed comprehensive reporting standards that provide transparency for critical private equity portfolio information. AltExchange published the Group One standard in December 2013, and the Group Two standard was released in February 2015, encompassing data definitions for Portfolio Company Metrics. The AltExchange standards are the product of a cross-industry working group that includes representatives from leading investment management firms, advisors and institutional investors.
The AltExchange XML file can be downloaded from the ILPA website. For more information, please visit the AltExchange website http://www.altexchange.com/ or contact Yves Damon, AltExchange Executive Director, at email@example.com.
Membership grows while technology providers and fund administrators are on board to support Standards for leading institutional investors around the world
New York, Feb 10th 2015 – The AltExchange Alliance announced that its data definition for Portfolio Company Metrics has been completed with the introduction of version two of the Standard. This milestone comes on the heels of last year’s release which covered partnership information including capital accounts, cash flows and portfolio summaries. With the extended reporting templates, the AltExchange Standards provide an unmatched level of consistency and transparency to the private equity industry that covers necessary portfolio information sought after by investors. With such data in hand, investors are more equipped than ever to track and analyze their portfolios, including the ability to better measure financial performance and geographic, sector and overall risk exposures at the portfolio company level.
“We strongly believe that the AltExchange Standard will provide efficiency and transparency for the industry” said Tom Keck, Partner and Head of Research at StepStone Group. “Having a format that is the result of cross industry participation makes it much easier for managers to service their investors and we expect all of our partners to embrace this approach.”
As a non-profit industry group, AltExchange has encouraged the participation of all industry practitioners. Accordingly, the Standards have been developed by an industry coalition of leading Limited Partners (LP), General Partners (GP) and investment advisors. In addition, technology firms such as eFront, SunGard and PFA Solutions are all working to deliver AltExchange-enabled solutions over the coming months.
Raymond Schnidrig, Chief Technology Officer of Partners Group, is excited about the important advancements of AltExchange. “Partners Group has been involved in shaping the AltExchange Standard since its inception. We look forward to the prospect of exchanging comprehensive portfolio information in a timely and effective manner via the AltExchange channel with our clients and business partners. This is the basis for increased transparency and risk management in private markets.”
Doug Morgan, President of SunGard’s Institutional Asset Management Group and AltExchange board member, is enthusiastic about the momentum created by AltExchange. “We have been working closely with some of our most sophisticated GP and LP clients to deliver functionality that will help them gain efficiencies of using AltExchange. We are committed to delivering the necessary technology support in the coming months to help make this successful transition.”
Many General Partners are eager to see an industry financial reporting standard take root. “We recognize the meaningful efficiency we can achieve by providing one set of standardized partnership information to our global investor base that is all-inclusive and validated through the AltExchange process,” said Tom Walker, CFO of Riverstone Holdings, a $27 billion private equity firm and AltExchange member. “AltExchange helps us improve our reporting process and we are ready to provide these files to any of our investors”.
Ed Brandman, Chief Information Officer of KKR, also recognizes the value of a single standard. “We continue to receive new data requests from LPs in a variety of formats focused on portfolio company metrics. Our involvement with AltExchange is an important way to get broad agreement on how to consolidate this information and move to a standard approach for defining the data and delivering it, which we think will be valuable for the wider private equity industry and improve operational efficiency.”
The AltExchange Alliance continues to grow and welcomes new members MetLife, Deutsche Bank Trust Company and PFA Solutions. The Institutional Limited Partners Association (ILPA) joined late last year and is represented on the AltExchange board of directors. All institutional investors, general partners, technology providers and fund administrators are welcome to join AltExchange and support this industry standard.
“The coming months are likely to see significant activity focused on driving adoption of AltExchange,” said Stuart Keeler, Executive Director of AltExchange. “The Standard has been defined and there are technical solutions available now and others coming shortly that will help ensure adoption is as easy as possible for both GPs and investors alike”.
Membership of AltExchange is open to all firms that operate within the private equity industry: for further information, please email firstname.lastname@example.org.
New York, May 30th 2014 – The AltExchange Alliance, the global private equity group committed to implementing the industry’s first ever common data standard for sharing alternative investment information, today announces that four major new members will be joining its ranks: The Institutional Limited Partners Association (ILPA), leading technology and service provider SunGard, leading global private equity investor AlpInvest and one of the ‘Big Four’, PricewaterhouseCoopers (PwC).AltExchange Alliance has achieved significant membership growth and key progress in developing the industry’s first global data standard for sharing alternative investment information.
As the Alliance’s focus shifts from formulating the standards to promoting widespread adoption, the participation of ILPA is important given the body’s previous work in campaigning for harmonised data standards within the industry. ILPA’s best practice guidelines are in many ways the forerunner of the AltExchange project. Similarly, the inclusion of SunGard alongside founding member eFront means that two of the biggest tech providers in the private equity industry now stand behind the initiative, highlighting the neutral and genuinely cross-industry nature of the Alliance.
Formed in May 2013, the Alliance has since seen substantial growth, now counting as members 50 firms from across the breadth of the private equity sector, from Limited Partners (LPs) and General Partners (GPs) to consultants and service providers. It also made crucial progress towards its objective with the publication of its ‘Group One’ standard – the industry’s first ever detailed template for the exchange of data related to capital accounts, schedules of investments, and cash flow activity – in December 2013.
“Developing a common data standard, that can be practically applied by the industry, has taken an incredible amount of work over the past year and we are delighted to see that effort is now paying off with heavy-weights such as PwC, ILPA, AlpInvest and SunGard joining our ranks,” said Fraser Booth, senior investment manager at USS. “It is proof positive that AltExchange is a truly collaborative undertaking with the full backing of the wider industry. Having the support and expertise of these highly influential players will help tremendously as we seek to communicate more widely within the industry, and drive adoption during the second half of the year.”
“In defining common data standards and promoting their adoption, AltExchange will have transformational value for the alternative investment industry,” said Doug Morgan, president of institutional asset management at SunGard. “Many of AltExchange’s current members use our Investran private equity platform, and ultimately these standards will enable technology solutions to help increase efficiency and provide more insightful data and analytics.”
“Creating the ability to allow GPs and LPs to share information electronically in a consistent format is an issue that impacts our members globally,” said Kathy Jeramaz-Larson, Executive Director of Institutional Limited Partners Association. “We are very supportive of the efforts of the AltExchange Alliance to tackle this difficult industry issue and welcome the opportunity to work with them and the chance to become part of the solution.”
Membership of AltExchange is open to all firms that operate within the Private Equity space: for further information, please email email@example.com.
London, December 17, 2013 – The AltExchange Alliance, a global private equity industry group launched in May 2013, has taken a major step towards its aim of developing a comprehensive global data standard for sharing private equity information. The Alliance has published its Group One standard – the industry’s first ever detailed template for the exchange of data related to capital accounts, schedules of investments, and cash flow activity.
The guidelines previously outlined by the ILPA and IPEV provided a starting point for the working group’s efforts. However, the new standard goes much further than anything the industry has seen before. It provides a robust, highly-detailed, fixed format data standard, and is now available for download from www.AltExchange.com.
The development follows a period of extensive consultation with members including GPs, LPs, TPAs and technology providers. Members helped to clarify industry terminology as well as decide on how information should be presented. Whereas previous attempts to define a data standard have been either GP-led or investor-led, this is the first time the two communities have come together to agree on a standard that works for all parties – an historic collaboration.
The Group One standard will now enter into a testing phase to be completed in early 2014, with full production scheduled for Q2. In the New Year, working groups will commence their focus on Group Two and Three of the standard. The Group One standard covers information central to the exchange of core quarterly data.
“The publication of the Group One standard is an industry milestone.” says Kristine A. O’Connor, CFO at Franklin Park, “The cooperation among GPs and LPs is a testament to the private equity industry’s enthusiasm for the AltExchange initiative. The willingness of members to work together to reach consensus is remarkable.”
The AltExchange Alliance now has more than 45 member firms hailing from across North America, Europe, and Asia. Membership is open to all firms that operate within the private equity space. For further information please email firstname.lastname@example.org.
New York, August 5th 2013 – The AltExchange Alliance has achieved significant membership growth and key progress in developing the industry’s first global data standard for sharing alternative investment information.
The growth since its launch has been remarkable and the activity on the AltExchange website has been non-stop, with hundreds of PDF downloads and more than 2,880 visits since its launch. Most recently, the Alliance welcomed new leading GPs to its growing community with the addition of Aberdeen SVG Private Equity, Apollo Global Management, The Carlyle Group, CVC Capital Partners, Encore Funds, Franklin Park, LLC; Lupton Company, LLC; Partners Group AG, and Pine Brook Partners.
Each of these new members have specific and powerful reasons for joining the Alliance. For example, the Carlyle Group joined in order to help build and adopt a common database format and provide more accurate and timely data for LP’s.
Nick Archer from CVC explained, “We believe a collaborative approach between GPs and LPs to define, agree upon and adopt a single industry-wide format for all participants is the way forward.”
The Partners Group is a GP member of the Alliance focusing on middle market direct investments across private markets. Raymond Schnidrig, the firm’s Chief Technology Officer commented, “We are convinced that this important initiative has the potential to significantly impact private markets from an operational perspective over the coming years. It will allow our firm to interact with our institutional client base in an easy and transparent manner while fully respecting the confidential nature of Partners Group’s investments on behalf of its clients.”
The Alliance is committed to balancing the interests of LPs, GPs, fund administrators, technology providers and consultants to achieve a universally accepted standard, incorporating guidelines from ILPA and IPEV. All Alliance members have the opportunity to contribute to the development of the standard and proposals are currently under review by leading GPs.
New York, May 1st 2013— Several major private equity firms have formed a new global industry alliance called the AltExchange Alliance. The AltExchange Alliance is pleased to also announce the availability of the private equity industry’s first comprehensive standard for data formats. The common format defined by this new standard will transform the way general partners, limited partners, fund of funds and fund administrators share, aggregate and analyze data.
“The problem the industry has been facing for years is the ability to effectively process ever increasing volumes of data,” commented Johnny Randel, CFO of StepStone and AltExchange Founding Member. “Firms have been spending considerable time and resources manually re-keying and reconciling information and less time analyzing data. Having the transfer of data automated and having agreed upon industry-defined data standards will help address this significant inefficiency.”
Organizations from around the world are members of AltExchange. The Alliance members have collaborated to define a detailed data format, enabling investors to streamline their workflows and analyze data more easily while reducing the fund manager’s workload to support individual requests for customized reports.
“We are often asked to provide varied levels of information to our investors,” says Ed Brandman, Chief Information Officer of KKR, and AltExchange Founding Member. “By adopting an industry standard, we can use a single format for all interested parties, enabling us to provide a more efficient and timely service for our investors. We encourage our investors to join the Alliance.”
The data standard uses tailored XML taxonomies, an open standard, and spans many relevant elements including portfolio company financials, investor organizations and contacts, fund information, cash flows, capital accounts and more.
A unique aspect of the AltExchange data standard is the existence of a corresponding validation platform. Firms using the AltExchange standard can submit a data file to the validation engine for certification prior to distributing or consuming it. This ensures that when a file is received, it can be used by the recipient with confidence.
George Georgiou, COO of Capital Dynamics, a Global Private Asset Manager and AltExchange Founding Member, comments: “We are delighted to join the AltExchange Alliance and be at the forefront of this international effort to define the industry standard, help automate the flow of data and increase transparency of information between GPs and LPs. Sending and receiving files in one universal format will revolutionize data processing in private equity – and AltExchange is committed to delivering tangible operational results.”