What LPs Really Want: The New Standard for Investor Communication ---
July 31, 2025
In today’s private equity environment, LPs expect more than just quarterly PDFs.
They want timely, transparent, and actionable communication—and firms that fail to meet that standard risk damaging long-term trust. So, what do LPs really want?
The New Standard for LP Communication:
- Real-Time Transparency: LPs no longer want to wait until quarter-end to see how their capital is performing. They expect on-demand access to fund performance via live dashboards and API-connected portals—enabling better decision-making and fewer surprise calls.
- Clean, Consistent Data: Manually compiled spreadsheets and inconsistent reporting formats make LP reviews time-consuming and error-prone. Using standardized templates and structured data ensures clarity, reduces back-and-forth, and builds trust.
- Portfolio-Level Insights: LPs are asking for more than fund-level IRRs. They want visibility into how value is being created—through growth metrics, operational KPIs, margin drivers, and ESG initiatives. This deepens their confidence in your strategy.
- Secure, Centralized Access: Emailing sensitive files is outdated and risky. Modern LPs prefer centralized, secure portals like Carta, Dynamo, or Allvue that give them role-based access to key documents, audit trails, and real-time performance snapshots.
- Better Responsiveness: Reports are only part of the relationship. LPs value quick responses, transparent explanations, and proactive updates—especially during volatility. Consistent, human communication can make or break LP confidence.
Real-Life Example:
One mid-market firm integrated their fund admin system with an LP portal. Instead of emailing PDFs, LPs now log in and view updated fund data anytime—reducing inbound questions by 60% and improving NPS.