Best Practices for Fund Performance Tracking

In private capital markets, tracking fund performance is more than just a reporting task. It’s central to how investment teams create value, communicate with LPs, and steer their portfolios through market shifts. Whether you’re managing private equity, private credit, buyout, infrastructure, or real estate strategies, having a clear and reliable view of fund performance is non-negotiable.

At Untap, we work closely with fund managers across these asset classes, and we’ve learned what sets apart the firms that track performance effectively from those still relying on fragmented systems and manual processes. Here are a few best practices that can make a big difference.

Centralise your data in one place

A common challenge we see is that key performance data is scattered across spreadsheets, emails, and outdated systems. This not only slows teams down but also increases the risk of errors. Centralising your data in one platform creates a single source of truth and gives investment teams, finance, and operations full visibility when they need it.

Use consistent KPIs across your portfolio

Without consistent KPIs, comparing performance across portfolio companies or strategies becomes tricky. Whether it’s IRR, TVPI, MOIC, or revenue growth, having a shared set of performance indicators helps you spot trends, flag issues early, and make better decisions.

For multi-asset firms, consistency is even more important. Defining a standard reporting framework across different strategies helps ensure clarity at the fund level, while still allowing for customisation where needed.

Tie performance tracking to your value creation plans

Performance tracking shouldn’t be disconnected from how value is actually being created. The most effective firms align their performance tracking directly with value creation plans. That might include growth initiatives, operational improvements, or sustainability targets.

Being able to show LPs not just how a fund is performing, but why it’s performing that way, builds trust and strengthens your story.

Automate where possible

Manual reporting slows teams down and eats into time that could be spent on higher-value work. Automating data collection from portfolio companies, updating dashboards, and generating LP reports reduces friction and boosts accuracy.

Automation is especially helpful for recurring tasks, like quarterly reporting or capital call updates. It frees up your team and ensures that performance insights are always up to date.

Include ESG and other non-financial indicators

As LPs continue to prioritise ESG, these metrics are becoming part of core fund performance tracking. Firms need a structured way to collect, monitor, and report ESG data across the portfolio — especially with emerging regulations and reporting frameworks.

It’s no longer enough to treat ESG as a separate report. It needs to be part of how performance is measured and communicated, alongside financial outcomes.

Make insights accessible to the right people

Fund performance data should be easy to access and interpret, not just for senior leadership, but also for team members across finance, operations, and investor relations. Interactive dashboards and custom views help people see the data that matters to them, without getting lost in spreadsheets or outdated reports.

Modern platforms like Untap allow you to filter and drill into performance by fund, geography, sector, or deal type, all while maintaining control over who sees what.

Build in auditability and transparency

With growing LP expectations and regulatory oversight, data transparency is a must. Every performance figure should be traceable to its source, with a clear audit trail of how and when it was updated.

Auditability builds trust and makes it easier to respond to due diligence requests or regulatory reviews without scrambling to explain your numbers.

Final thoughts

Strong fund performance tracking isn’t just about better reports. It’s about making better decisions, aligning teams, and delivering value to investors. By centralising data, setting consistent metrics, automating workflows, and integrating ESG and value creation tracking, fund managers can build a performance strategy that actually supports performance.

At Untap, we help private capital investors do exactly that. If you’re ready to improve how your firm tracks and communicates performance, we’d love to show you how we can help.

Book a demo today and learn how we can support your team! https://www.untap.pe/en/contact-us