Transparency is becoming table stakes in a market defined by greater risk and increased regulatory scrutiny. For the past few years, LPs have been obsessed with one performance metric: DPI. Increasingly, however, these investors are also paying closer attention to another indicator of GP quality.

Earlier this month, Chune Loong Lum, a partner at law firm Ropes & Gray, told Private Equity International that transparency was becoming a more prominent topic of conversation at the negotiating table.

This shift reflects growing investor demand for clearer visibility into portfolio company operations and performance reporting. As regulatory requirements tighten and market conditions remain volatile, limited partners are seeking reassurance that their capital is being deployed responsibly and effectively.

The emphasis on transparency extends beyond simple compliance. Investors now expect detailed reporting on environmental, social, and governance factors, as well as real-time access to portfolio data. This evolution marks a departure from traditional private equity practices where information sharing was often limited.