January 20, 2026
We are pleased to again collaborate with Impact Capital Managers (ICM) on Volume 2 of its inaugural LP Survey: Impact Reporting Priorities in Theory and Practice. This report, published by ICM and Impact Frontiers, studies how LPs/allocators utilize and value the impact reports created by GPs/fund managers.
The report elaborates on the primary uses of impact reports, which include assessing initial alignment with investment strategies and informing re-investment decisions. LPs underscored that the most useful impact reports clearly articulate an impact thesis, outline a rigorous management approach, and include case studies that illustrate outcomes in practice. Increasingly, allocators are looking for insights that go beyond outputs to evidence of real-world outcomes. LPs also indicated the importance of honesty and candor when results diverge from expectations. Reports that acknowledge challenges and describe adaptive responses build greater credibility and trust.
The research uncovered that staff at most allocator organizations review both financial and impact reports, LPs expressed a strong preference for materials that bring these dimensions together – whether through integrated documents or side-by-side presentation. While most LPs cannot commit to detailed feedback on every report given the sheer volume they receive, they recognize the responsibility they have to their GPs to flag areas of particular strength or opportunities for improvement as they arise. Thus, this report suggests a set of topics for fund managers to prioritize in order to minimize the burden on both the reviewer and producer of a GP impact report. Finally, LPs welcomed greater transparency through mutual exchange, noting that sharing their own impact reports with GPs could foster shared learning and strengthen alignment.
These insights point to a set of emerging good practices in impact reporting for LPs and GPs alike: prioritize clarity on thesis and outcomes, integrate financial and impact information together, report candidly on both successes and challenges, and cultivate opportunities for two-way learning. These practices can enhance the usefulness of reports for LP decision-making and deepen trust and partnership between LPs and GPs.
