ILPA Best Practices

The ILPA strives to improve the global private equity industry through the establishment of industry best practices. These best practices seek to provide consistency, standardization, benchmarks and structure in order to allow for better investment returns and a more sustainable private equity industry.

The ILPA Private Equity Principles

First established in September 2009, the ILPA Private Equity Principles (“Principles”) were developed to encourage discussion between Limited Partners (LPs) and General Partners (GPs) regarding fund partnerships.  They outline a number of key principles that will further partnership between these two groups.

The Three Guiding Principles

The ILPA believes that there are three guiding principles which form the essence of an effective private equity partnership: Alignment of Interest, Governance and Transparency.  The Principles is built around the improvement of these three key tenets.

How should the Principles be applied?

These preferred private equity terms and principles may inform discussions between each GP and its respective LPs in the development of partnership agreements and in the management of funds. However, we recognize that a single set of terms cannot provide for the broad flexibility of market circumstance.

ILPA does not seek the commitment of any LP or GP to any specific terms. They should not be applied as a checklist, as each partnership should be considered separately and holistically.

To read more about the Principles, click here.

Endorse the Principles now

We encourage private equity organizations to show their support of the Principles through public endorsement.

To show your support and endorse the Principles, click here.

Standardized Reporting Templates

The ILPA is working in conjunction with GPs and LPs to develop a suite of standardized templates that will help to regulate the industry’s reporting. To date, there has been one template released – ‘Capital Call and Distribution Notice’.

To learn more about the Capital Call and Distribution Notice template, click here.