As we approach the 31 December 2025 reporting cycle and look ahead to 2026, this section highlights key accounting, regulatory, and industry developments both recently implemented and on the horizon, that are expected to shape reporting for private equity management entities and fund vehicles.
1. December 2025: Updated IPEV Valuation guidelines
- Final release expected in December 2025, effective for periods beginning on or after 1 January 2026
- Evolution not revolution: Core principles remain unchanged, additional commentary and explanatory material added alongside worked examples
- Key updated areas: the Board statement implies. Key areas that have received welcome expansion include Known and Knowable Information, Complex Capital structures, Liquidation preferences, use of AI, and Calibration
- Whilst the principles remain consistent, firms will need to time to understand the additional notes and assimilate updates into their valuation approach. For those reporting monthly NAVs, the window from release to implementation will be tight.
2. January 2026: Accounting updates
- FRS 102 amendments effective 1 January 2026: Lease accounting and revenue recognition accounting updated to better align with IFRS 16 and 15 respectively. See our article, How FRS 102 amendments affect Private Equity, for further detail.
- IFRS amendments effective 1 January 2026: IFRS 9 & IFRS 7 amended including classification and measurement clarifications of contractually linked instruments & ESG linked features, updates to derecognition rules and enhanced disclosures for instruments with contingent features & equity instruments at FVOCI
- Whilst effective 1 January 2027, amendments to IFRS 18 include an overhaul of income statement preparation requiring 2026 comparatives.
3. Q1 2026: Updated ILPA Reporting and Performance template
- The 2026 reporting changes will be the most significant update to ILPA reporting in 10 years.
- The updated Reporting template (replacing the 2016 version) for funds in investment phase, to be implemented in Q2 2026. Key enhancements include increased granularity for internal chargebacks and external partnership expenses and expanded detail on cash/non-cash flows
- The newly introduced Performance template aims to standardise performance methodology and is to be implemented Q1 2027. It will be applicable to funds launched from 1 January 2026 and is designed to complement not replace the Reporting template.
4. April 2026: AIFMD II
- In April 2024, the EU passed updates to AIFMD, these amendments known as AIFMD II are to be transposed by Member States by 16 April 2026 applicable to all EU AIFMs
- For UK AIFMs, expect to see some divergence in 2026. With an eye on supporting innovation and growth, the UK government and FCA have proposed a move away from the more rigid thresholds in the EU legislation to a more proportionate, activity-based approach. The FCA plans to publish detailed rules in H1 2026, with implementation later in the year.
