What should a quarterly LP update include?

Start with the quarter’s decision-useful story

Open with the few developments that changed an LP’s understanding of the fund: deployment, a new or follow-on investment, a financing or valuation event, a material operating change, a realization, a write-down or a change in the firm’s plan. State what happened, why it matters to this fund and what the manager is watching next.

Reconcile the fund snapshot

Use the same definitions and reporting date throughout the update. Show commitments, called capital, invested capital, remaining capital, distributions and current value using the figures approved for the period. Where the manager presents performance measures, identify whether they are gross or net, the as-of date and any provisional valuation treatment.

Compare activity with the fund plan when that comparison is useful: new companies against the company target, capital deployed against the investment period, initial checks against plan, and reserve use against the approved follow-on budget. Explain the variance in sentences; do not leave the LP to infer it from a table.

Explain portfolio changes with evidence

Cover new investments, follow-ons, material financings, operating progress, risks, write-downs and realizations. Board materials and company updates can supply much of the factual record, but the manager still needs to interpret what changed at fund level. Separate company-reported information from the manager’s assessment and identify the period each fact covers.

Include difficult developments with the same precision as positive ones. An update earns trust by making changes legible, not by turning every company paragraph into promotion.

Close with what happens next

State expected capital calls or distributions, upcoming meetings, portfolio decisions and information the manager expects to revisit. Include firm or team changes that affect the management of the fund. Check the fund’s governing documents, side letters, valuation policy, administrator package and adviser guidance before deciding what must accompany the letter.

The LP Quarterly Update Draft uses the firm’s approved identity and turns current Architecture records and uploaded evidence into an editable manager-owned draft. It does not add Colibrí branding to the LP communication.

Sources and limits

The external sources describe common VC reporting practices and the operating data managers use in recurring reviews. They do not replace the fund’s governing documents, side letters, administrator records, valuation policy or legal and regulatory advice. Architecture drafts from the information supplied and recorded by the manager; the manager remains responsible for review and delivery.

• A Guide to LP Reporting Best Practices for VCsVisibleA practitioner overview of fund-performance, portfolio and manager context commonly included in VC LP reporting.
• Top Six Workflows of Data-Driven Venture ManagersCartaConnects recurring fund reviews with deployment, portfolio count, ownership, market conditions and reserves.

Questions GPs ask

What information belongs in a venture fund quarterly update?

Include the quarter's material fund and portfolio changes, reconciled capital and value figures, investment activity, risks, plan-versus-actual context, firm developments and upcoming actions.

Can board decks be used to prepare an LP update?

Yes, as source evidence when the manager is authorized to use them. Company-reported facts should be dated and distinguished from the manager's interpretation, then reviewed before external delivery.