Speaking on a panel on the topic, Apax Partners investor relations director Ellen de Kreij supported consistency in “some core elements” in reporting, but called for a degree of flexibility to address LPs’ specific concerns. Her co-panellist Thomas Kristensen, executive director at LGT Capital Partners, agreed with her suggestion that there could be a standardised list covering 80 percent of LP requirements, with the remaining 20 percent open for more fund-specific questions.
When the audience was asked what LPs should ask GPs, 44 percent of the audience agreed they should ask anything that they want to help them assess a GP’s approach to ESG integration. Coming second, 31 percent said LPs should ask for any ESG information they would use.
LPs need to identify what information they want and what they are going to do with it, Kristensen said. “People can ask whatever they want but they have a responsibility to use what they get back.”
De Kreij highlighted the increased reporting demands LPs placed on GPs’ time. Apax is receiving rising numbers of inbound inquiries from its 225 LPs and some want information at the portfolio level. “We aim to please but I ask if this is how we should be spending our time,” she said.
However, PGGM advisor Tim van der Weide countered that LPs have the right to ask any questions of GPs, noting that LPs themselves have a responsibility to their own beneficiaries who have particular agendas.