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ILPA Private Equity Principles

Overview

Recognizing a need to establish Best Practices regarding fund partnerships between Limited Partners and General Partners, the ILPA has developed the Private Equity Principles (the “Principles”), the first document of its kind for the private equity industry.

These Principles were developed with the goal of improving the private equity industry for the long-term benefit of all its participants by outlining a number of key principles to further partnership between LPs and GPs. Over the past year, ILPA has heard numerous success stories regarding improved communication between LPs and GPs.

To date there have been 2 versions of the Principles developed:

Going forward, ILPA will issue further appendices, where relevant, to the updated 2011 Principles to address new topics as industry best practices continue to evolve.

For a list of Frequently Asked Questions, click here (PDF)

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Endorsing the ILPA Principles

The publication of the ILPA Private Equity Principles Version 2.0 has received over 240 endorsements representing an indication of general support for the efforts of the ILPA and industry supporters to contribute to an effort to strengthen the basic “alignment of interests” value proposition in private equity.

The second version of the Principles maintains the tenets of version 1 and includes the input of GPs to provide the clarity and focus necessary for practical implementation.

Given the substance of the document has not been altered, it is not necessary to provide confirmation of a “re-endorsement” and we will continue to demonstrate your support on ilpa.org and maintain your organizations name on our endorsement page.

There is no requirement for ILPA members to endorse the Principles as the ILPA understands that each organization has its own internal policies on such matters. The more important component is the application of the Principles as a best practice, which in and of itself is a strong endorsement.

  • For a complete list of endorsers, click here (PDF)
  • To fully endorse the Principles, click here
  • To conditionally endorse the Principles, click here
  • If you would like to change the status of your endorsement, click here

When endorsing the Principles:

  • Include your name and organization
  • These links may not work if you are using Lotus Notes. If you are having trouble with the links, please visit the information request page and select “Other Questions”

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ILPA Private Equity Principles History

Background

The ILPA released the original Private Equity Principles (the “Principles”) on September 8, 2009 to encourage discussion between LPs and GPs regarding fund partnerships. These Principles were developed with the goal of improving the private equity industry for the long-term benefit of all its participants by outlining a number of key principles that will guide the continued commitment to partnership between LPs and GPs. Over the past year, the ILPA has heard numerous success stories regarding improved communication between LPs and GPs as well as the implementation of many of the best practices. To that end, the Principles are off to a great start in achieving the goals that were originally envisioned.

  • March 2009: Members meet for a series of round tables regarding the state of the industry and governance.
  • March 2009: The ILPA Principles Committee is formed as a working committee to help craft the Principles document.
  • May 2009: The ILPA releases a survey to its members to find out the opinion regarding partnership governance, alignment of interest between GPs and LPs and reporting & transparency.
  • Summer 2009: An expanded Principles Committee is structured to gather feedback from the GP community and other industry thought-leaders with the mandate to evolve the Principles as deemed appropriate.
  • September 2009: The ILPA Private Equity Principles are published.

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