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If pulling together your next LP report feels like assembling IKEA furniture with missing instructions, you’re not alone.
For many GPs and Heads of Finance, LP reporting is a recurring time sink. Data lives across tools, files, email inboxes or whatsapp messages. Reports get built from scratch. Audits trigger panic. And worst of all, the insights LPs actually care about get lost in the shuffle.
That’s why Vestberry recently hosted a fireside chat with Leah Welsh, Investment Associate at Geneva-based AR Capital. The conversation focused on what LPs really think about data-driven practices in venture capital and how they want to see that reflected in your reporting.
Here are three key takeaways from that conversation that can help you rethink your approach to LP reporting.
1. LPs are overwhelmed by volume, so help them cut through the noise
Leah shared that AR Capital reviews over 500 funds per year. That kind of volume creates a very real need for structure. LPs need systematic ways to evaluate track records, sourcing strategies, and portfolio performance.
“We’re trying to evaluate funds against a set of defined metrics,” she said. “We can’t rely on gut feel or nice branding anymore.”
What this means for you: Your LP reports should not read like a data dump. Instead, present performance data in a clear, structured, and comparable way. Highlight the metrics that matter most such as TVPI, DPI, IRR, write-ups or write-downs, and follow-on rationale.
2. Data transparency builds trust, but it needs to be accessible
Transparency is a recurring theme for LPs, especially when it comes to ongoing fund performance.
“We expect to see the underlying portfolio data, especially once we’re in a fund,” Leah noted. That includes detailed tracking of every investment, ideally on a quarterly or even monthly basis.
But it’s not just about transparency for its own sake. It’s about making LPs feel like insiders, not outsiders.
What this means for you: Giving LPs access to up-to-date, well-organized data builds confidence. Whether it’s through a secure dashboard, structured PDF reports or automated updates, the goal is to reduce back-and-forth and show that you’re on top of your portfolio.
3. Audit readiness is the unsung hero of LP communication
No one wants to talk about audits until you are in one. And then it is too late.
From the LP side, audit quality is a key signal. Are your numbers consistent? Can you trace the data back to its source? Is there an audit trail that shows how valuations and KPIs were updated over time?
What this means for you: If you’re still juggling spreadsheets with manual version control, it’s only a matter of time before something breaks. Consider tools or systems that help track changes, control access and centralize data for both internal reporting and audits.
Modern tools can help without being a heavy lift
The good news is that you do not need to become a data scientist or rip out your current tech stack. There are modern VC portfolio tools designed specifically to:
- Automate data consolidation
- Structure LP reports in a few clicks
- Maintain audit trails and access controls
- Provide LPs with secure, on-demand visibility
Think of it as moving from reactive reporting to proactive communication. This shift helps build stronger trust with LPs in the process.
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