Proprietary technology eases burden of credit facility disclosures

13 July 2020 - Recently, the Institutional Limited Partners Association (ILPA) published its revised 2020 guidance regarding recommended disclosures for subscription lines of credit. As both a fund administrator and provider of credit, we have long recognized the value of credit facilities for both limited partners (LPs) as well as general partners (GPs). Both our GP and LP clients have consistently told us that they favor the use of credit facilities in order to manage the timing and operational complexity of capital calls. And their actions match their words: across the Citco Fund Services platform, the majority of our closed-end fund clients have engaged in the prudent use of subscription facilities.

The 2020 ILPA guidelines provide a laudable disclosure framework to enhance transparency for LPs. For many investors, more information is prima facie desirable. However, every disclosure item also represents an additional burden on a GP’s operations team.

We seek to alleviate this burden through the use of our teams and our proprietary technology. We assist our clients in assembling, structuring, validating and reporting data. Whether it is a calculation of IRRs before and after the effect of a line of credit, or generating NAVs and allocated credit facility amounts per LP, our systems are robust and flexible enough to handle almost any reporting complexity, including the latest ILPA reporting requirements. The Citco administrative solution allows for cost efficient, accurate reporting, to the benefit of both LPs as well as alternative investment managers.