LP satisfaction correlates 0.72 with quality of reporting, with poor reporting causing 35% of LP relationships to deteriorate, according to Preqin LP survey. Meanwhile, efficient LP reporting saves GPs 20-40 hours quarterly—time better spent on portfolio support and deal sourcing.

Peony streamlines LP reporting: organize quarterly materials in data rooms, track LP engagement on portfolio updates, maintain professional presentation, and secure sensitive fund data. Purpose-built for VC fund operations.

Here's your complete venture capital LP reporting guide for 2025.

What is LP Reporting?

Definition: Regular updates provided by venture capital fund managers (GPs) to limited partners (LPs) regarding fund performance, investments, and overall financial health.

Core purposes:

Legal/regulatory compliance (SEC requirements)
Transparency and trust building
Performance communication
Portfolio updates
Strategic insights sharing
Fundraising relationship maintenance

Frequency:

Quarterly: Standard (minimum)
Monthly: Some LPs request
Annual: Comprehensive review
Ad-hoc: Significant events

Key LP Reporting Metrics

Fund Performance Metrics

TVPI (Total Value to Paid-In):

Formula: (Distributions + NAV) ÷ Paid-in Capital
Measures: Total value creation
Target: 2.0x+ (good fund), 3.0x+ (top tier)
Interpretation: $1 invested worth $X today

IRR (Internal Rate of Return):

Measures: Annualized return rate
Accounts for: Time value of money
Target: 20%+ (good), 30%+ (top tier)
Benchmark: Against comparable funds

DPI (Distributed to Paid-In):

Formula: Cumulative Distributions ÷ Paid-in Capital
Measures: Actual cash returned (realized)
Target: 1.0x+ by Year 7-10
Liquidity indicator

RVPI (Residual Value to Paid-In):

Formula: Net Asset Value ÷ Paid-in Capital
Measures: Unrealized value remaining
Interpretation: Potential future distributions
Diminishes as fund matures

Portfolio Company Metrics

By company:

Latest valuation
Valuation change (%)
Follow-on rounds raised
Key milestones achieved
Challenges and risks
Management changes

Aggregated:

Portfolio fair market value
Mark-to-market changes
Write-ups and write-downs
Exits (IPO, M&A)
Failures/write-offs

Core LP Report Elements

Quarterly reports include:

Executive Summary

Fund performance highlights
Key developments
Major portfolio updates
Strategic insights
Outlook and themes

Fund Financial Statements

Balance sheet
Income statement
Cash flow statement
Capital account details
Fees and expenses breakdown

Performance Metrics

TVPI, IRR, DPI, RVPI
Benchmarks vs. peer funds
Historical trend charts
Attribution analysis

Portfolio Updates

Company-by-company status
Valuations and changes
New investments
Follow-on investments
Exits
Write-offs

Capital Activity

Capital calls (current quarter)
Distributions (current quarter)
Remaining capital commitment
Deployment pace
Reserve allocation

Market Commentary

Market conditions
Industry trends
Competitive landscape
Fundraising environment
Exit environment

LP Reporting Best Practices

Standardization

Consistent format:

Same structure every quarter
Comparable year-over-year
Easy to find information
Predictable content

Consistent metrics:

Same KPIs tracked
Consistent calculation methods
Comparable benchmarks
Clear definitions

Transparency

Full disclosure:

Good news and bad
Challenges discussed openly
Risks identified clearly
Management actions explained

Proactive communication:

Don't hide problems
Early warning of issues
Explain decisions
Solicit input when appropriate

Timeliness

Reporting deadlines:

45 days post-quarter (standard)
30 days (best practice)
Consistent delivery
Avoid delays

Real-time updates:

Material events immediately
Exit announcements promptly
Major portfolio developments
Emergency communications

Customization

LP preferences:

Some want more detail
Others prefer summaries
Different metric priorities
Varying communication preferences

Segmentation:

Institutional vs. individual
Large vs. small LPs
Strategic vs. financial
Customize appropriately

Technology for LP Reporting

LP reporting platforms:

Juniper Square
Carta
Chronograph
Allvue Systems
eFront

Document sharing:

Peony for secure distribution
Custom LP portals
Encrypted email
Physical mail (rare)

Data visualization:

Tableau
Power BI
Custom dashboards
Embedded analytics

Creating Effective Reports

Visual presentation:

Charts and graphs for metrics
Portfolio company snapshots
Geographic/sector heat maps
Timeline visualizations

Writing style:

Clear and concise
Executive-level language
Data-driven insights
Forward-looking commentary

Format:

Professional design
Consistent branding
Easy navigation
Mobile-friendly PDF

Distributing LP Reports

Using Peony:

Setup:

Create "LP Reports" data room
Upload quarterly report
Organize by quarter/year
Configure LP access

Security:

Distribution:

Generate unique links per LP (trackable)
Or single link with email gate
Send via email
Track which LPs accessed
Monitor engagement

Benefits:

Know which LPs engaged
See which sections reviewed
Professional presentation
Complete audit trail
Easy access for LPs

Legal and Regulatory

SEC requirements:

Form ADV updates
Performance reporting standards
Fee disclosure
Conflict disclosures

Limited Partnership Agreement:

Reporting frequency stated
Content requirements specified
Delivery methods allowed
Timeliness commitments

Compliance:

ILPA reporting templates
Consistent with registration
Accurate and complete
Timely delivery

Common LP Reporting Mistakes

Mistake 1: Inconsistent timing

Late reports
Irregular delivery
Impact: LP frustration, trust erosion

Mistake 2: Lack of transparency

Hiding problems
Incomplete disclosure
Impact: Surprise issues, damaged relationships

Mistake 3: Data inconsistencies

Metrics calculated differently
Numbers don't reconcile
Impact: Confusion, credibility damage

Mistake 4: Poor formatting

Hard to read
Inconsistent design
Impact: Professional appearance concerns

Mistake 5: No engagement tracking

Don't know if LPs read reports
Miss feedback opportunities
Impact: Wasted effort, missed insights

How Peony Supports LP Reporting

Peony streamlines LP report distribution:

Organized distribution:

Create LP portal/data room
Organize by quarter
Archive historical reports
Easy LP access

Engagement tracking:

See which LPs accessed
Track report engagement
Monitor section interest
Identify questions early

Professional presentation:

Custom branded domain
Professional viewer experience
Mobile-optimized
Fast access

Security:

Confidential fund data protected
LP-specific watermarks
Access controls
Complete audit trails

Efficiency:

Upload once
All LPs access
Version control
Update easily

Result: Professional LP reporting with complete engagement visibility.

LP Reporting Checklist

Before distribution:

During distribution:

Upload to secure platform
Configure LP access
Send notification emails
Track access

After distribution:

Conclusion

Effective LP reporting combines accurate metrics (TVPI, IRR, DPI, RVPI), transparent communication, timely delivery, and professional presentation. While legal requirement, excellent reporting also builds LP relationships, supports fundraising, and demonstrates fund management quality.

Peony enables professional LP report distribution with secure access, engagement tracking, and organized archiving—helping GPs maintain strong LP relationships efficiently.

Streamline LP reporting: Try Peony

Impress Investors

Venture Capital LP Reporting: Complete Guide for Fund Managers in 2025