DOCUMENTATION UPDATE Documents relating to AltExchange, content and definitions of the various domains as well as the overall description of the Alliance organization were updated.
NEW TEMPLATES AVAILABLE All Excel templates facilitating the production of AltExchange Messages can now be downloaded on the new website. These include the “Portfolio Metrics” and the “ILPA Reporting” templates that have been previously released. A new template relating to the “Cash-Flow” information has also been added to this new section, enabling users to easily prepare an XML compliant cash-flow message.
NEWS We have included a new section detailing recent industry news but also any media coverage of the AltExchange Alliance. Our intent is to include information on conferences and industry events during which members will have an opportunity to promote the Alliance.
VIDEO DESCRIBING THE ALTEXCHANGE VALIDATION PROCESS A video describing the main steps of the validation process of AltExchange messages is now available on the main page of the website. It reviews in details the different steps for the preparation, transformation in XML format, validation and exchanging of AltExchange messages. We would like to thank PFA Solutions for their help in developing this vastly improved website!
FUTURE ALTEXCHANGE CHANGES As the need for standardized financial reporting continues to develop, the board is considering ways to improve the effectiveness of AltExchange to help shape how standardization plays out in the industry. Opportunities include establishing a dedicated staff, offering more educational/user support, securing additional resources and enhancing the Alliance’s overall governance. Ultimately, we believe the power of our organization resides in our diverse members who play key roles in various subsets throughout the investment industry. There will be more to come over the next few months on these changes so stay tuned.
For further information please contact Yves Damon (firstname.lastname@example.org)
“As the asset class has become further institutionalized and the number of participants has grown, there’s been a lot of effort put into templates for data population. The ultimate goal of AltExchange is to make the process more automated.” – Karin Lagurlund, Chief Financial Officer, Harbourvest
“It’s not about storing data, or specifying what that data should be. AltExchange is exactly that: an exchange. It’s about making sure that the data comes across in a consistent way.” – Christopher Ward: Head of Business Development, eFront
“For many of the large LP’s, they might be managing 100 GP relationships, and today as they request information quarterly, there will be some level of push, but an awful lot of pull, and so from an investor relations staffing standpoint, that’s challending.” – Ed Brandman, KKR
“If someone isn’t interested in improved portfolio management through better data management through better data management and analysis in today’s environment, it makes you wonder about their overall consideration on being a fiduciary.” – Joncarlo Mark, Upwelling Capital
“Two or three years ago, there would have been zero traction for this. If you look at what firms are already asking for and sharing today – far more than in the past – GP’s are potentially producing 20 to 30 individualized investment packs every quarter, while LPs are receiving those in all different formats. We decided there has to be a smarter way.” – Stuart Keeler, Managing Director, Data Services, eFront
“Standardization will come,” says Tarek Chouman, managing director for Asia and the Middle East at eFront, a software solutions provider. “If LPs pressure GPs to report in a specific open format, it will be hard for the GPs to say no – either because a particular LP is important to them or because many LPs are asking for it. And if the GP can report in one format to all LPs, it might be just as happy.”
“The private equity fund industry did have high-level guidelines as to what information should be included in reports, but can now count on consistent data formats and data points.By having the exact same information using consistent XML-based formats in electronic form, institutional investors should have far less difficulty in interpreting the data. Institutional fund managers wanting to consolidate their capital with fewer, better performing private equity fund managers can understand data at the investor and eventually below the portfolio level.” – Stuart Keeler, chief operating officer, eFront
“We think that AltExchange is a worthwhile initiative which is why we joined. We will be testing the formats after we complete our installation of eFront system and have one private equity fund of funds client who says it is interested.” – Gus Tambakis, director of business development, MB Fund Administration
Almost a year on from the launch of its private equity reporting template on fees, expenses and carried interest, the Washington-based Institutional Limited Partners Association (ILPA) reports “significant progress” in the template’s adoption.
“We require the managers of all new commitments to use the ILPA template,” said a spokesperson for the fund, which has 7.8 per cent of assets in private equity.
“Over half of our managers are either using the ILPA template or are working to use the ILPA template.”