Colmore, a provider of private market Limited Partner services, and the Institutional Limited Partners Association (ILPA), have launched a membership offer for Colmore’s fee validation service.
Colmore’s Fee Allocation Incentive Reporting program, or “FAIR”, is designed to help private markets investors validate fees, expenses and carried interest allocations charged by underlying fund managers.
Ben Cook, CEO of Colmore, says: “ILPA has been fundamental in helping LPs get better access to fee and expense reporting data. What comes next is where we come in: providing confidence that the fees are as the Investor expected.” Cook continued, “We spent a lot of time developing an approach to fee validation that is both pragmatic and robust. We are delighted that this partnership will help ILPA members benefit from a service that we’re currently providing to some of the largest investors in the world.”
Steve Nelson, ILPA’s Chief Executive officer, says: “We know that fee transparency and validation in private markets is a key area of focus for our members. We’ve responded by working with the industry and issuing templates that provide greater disclosure, offer more clarity and drive efficiencies around this important data. Colmore’s service is a positive addition to this value chain and we encourage our members to take advantage of this offer to validate all that has been agreed upon.”
Colmore’s approach provides investors with greater confidence and transparency in their underlying private fund charges by reviewing the fund documents, such as the LPA and the financial statements provided by the General Partner. Using a mixture of accounting calculations, technology and statistical analysis, Colmore provides detailed reports to investors, showing actual fees against expected fees and benchmarking individual funds against a wider pool of funds with the same vintage and sector focus.
