Quarterly LP Statements: What Your Fund Admin Should Send

Short answer: A quarterly LP statement should show each LP's commitment, contributions to date, unfunded commitment, distributions, allocated income, expenses and gains, and ending capital account balance for the quarter and since inception. The fund admin builds it from the fund's ledger and capital account records. Before release, the GP should check that statements tie to the fund's financials and to LPs' wires.

The quarterly statement is the document LPs see most. They may never read your audited financials, but they will compare their statement to their own records. Errors here cost more trust than almost anything else in administration.

This guide covers what a good statement contains and how to review it. For the service that produces it, see our fund admin page.

What a quarterly LP statement includes

Many funds add fund-level information too: a summary of investments, total commitments, and performance figures the GP chooses to report. The mechanics behind the balance are in LP capital accounts explained.

Capital account vs NAV

LPs sometimes ask why their "value" moved when nothing happened. The capital account reflects the LP's share of the fund's net assets, so it moves with valuations the GP sets and with fees and expenses, even without new contributions or distributions. A short note on what drove the change helps.

How the fund admin builds the statement

1. Close the quarter's books. Record contributions, investments, fees, expenses and income.

2. Apply valuations. Record the GP's valuations for the quarter under the fund's policy.

3. Allocate. Allocate income, expenses and gains to LPs according to the LPA, including side letter terms.

4. Roll forward each capital account. Opening balance to ending balance.

5. Generate statements and post them to the investor portal.

GP review checklist before release

• ☐ Total of all LP ending balances equals fund net assets on the balance sheet

• ☐ Contributions match wires received in the bank account

• ☐ Unfunded commitments match commitment minus called capital

• ☐ Fee calculations match the LPA, including any management fee offsets

• ☐ Side letter LPs show the right fee and carry terms

• ☐ LPs from later closes show correct equalization

• ☐ Valuations match what the GP approved

A ten-minute review against this list catches most errors before LPs do.

Common statement errors

• Wrong unfunded commitment after a recallable distribution

• Fees charged at the wrong rate to a side letter LP

• Late-close LPs whose catch-up wasn't reflected

• Rounding differences that make totals not tie

• Stale contact details, so statements reach the wrong person

Performance figures on LP statements

If you report performance figures such as IRR or multiples, be consistent and clear about how they're calculated, whether they're net or gross, and the period. Registered advisers should check the SEC's marketing rule if statements are also used for marketing; the SEC's marketing rule FAQ covers related questions. When in doubt, ask counsel.

How often should LPs get statements?

Quarterly is the common standard for venture funds, with an annual audited package if the fund is audited. The LPA sets the deadline. Some funds also offer an always-on portal so LPs can check balances any time.

Inception-to-date vs quarter-to-date

Good LP statements show two columns for most lines: activity in the quarter and activity since the LP joined the fund. The quarter column helps the LP reconcile to their own books for the period. The inception-to-date column helps them see the whole relationship: how much they've funded, how much has come back and what's left to call. If your statements only show one, LPs end up building the other themselves, and their numbers may not match yours.

Reconciling statements to LP records

LPs, particularly institutional ones, reconcile your statement against their own records each quarter. The usual sources of breaks are:

• Timing. A wire sent on the last day of the quarter that the fund recorded the next day.

• Fees netted from distributions. If you net fees or expenses against a distribution, show the gross amount, the deduction and the net clearly.

• Recallable amounts. LPs need to see which distributions can be recalled, or their unfunded figure won't match.

• Currency. If an LP funds in another currency, show the amount received in the fund's currency.

Asking your administrator to include a short contributions and distributions ledger with each statement prevents most of these questions.

Delivery and access

Statements are confidential. Most funds deliver them through an investor portal rather than email attachments, with access limited to named contacts at each LP. Keep the contact list current: LPs change staff, use advisers and add family members. Your fund admin should have a process for adding and removing portal users that requires LP confirmation, not just a request from a new email address.

What to do when you find an error

Errors happen. If a statement goes out with a mistake:

1. Confirm the correct figures with your administrator.

2. Identify every LP affected, not just the one who noticed.

3. Issue corrected statements with a brief, factual explanation.

4. Fix the cause, whether it's a side letter term not loaded or a wire recorded in the wrong period.

A quick, clear correction usually preserves trust. A slow or partial one doesn't.

Annual package

At year end, many funds send LPs a package that includes the fourth-quarter statement, audited financial statements if the fund is audited, and a note on expected K-1 timing. Bundling these reduces the number of separate documents LPs track and makes it easier for their own auditors.

How Allocations handles quarterly statements

Every fund on Allocations has a dedicated fund accountant who closes the quarter, prepares LP statements and posts them to the investor portal. We support the annual audit. The Fund plan is $19,500 per year; K-1 preparation is a separate add-on. For a full view of the day-to-day work, see what a fund administrator does.

Frequently asked questions

What is an LP capital account statement?

A periodic statement showing an LP's commitment, contributions, distributions, allocated income and expenses, and ending capital account balance.

How often do VC funds send LP statements?

Usually quarterly, with timing set by the LPA, plus annual audited financial statements if the fund is audited.

Why did my capital account change with no new contributions?

Capital accounts move with valuation changes, fees and expenses, even without cash moving.

What is unfunded commitment?

The part of an LP's commitment not yet called, adjusted for any recallable distributions.

Who prepares LP statements?

The fund administrator prepares them from the fund's books; the GP reviews and approves them.

What should a GP check before statements go out?

That LP balances total to fund net assets, contributions match wires, fees match the LPA and side letters, and valuations match what was approved.