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Private Equity Principles Version 2.0

To help enhance the private equity asset class globally, the ILPA has now released an updated version of the Private Equity Principles. Principles 2.0 reflects feedback and input collected from GPs and LPs throughout 2010 and provides increased focus, clarity and practicality. In addition, the ILPA has also released the first in a series of Standardized Reporting industry templates.

To read the press release, click here

To read the Private Equity Principles Version 2.0, click here (Also available in Mandarin)

To read more about the Standardized Reporting Templates, click here

To provide your comments on the Principles, click here

To view related press, click here

Principles 2.0

In order to make ongoing improvements to the Principles and gain even greater consensus on implementation, ILPA committed to solicit additional feedback and engage in discussions with both the LP and GP community throughout 2010. After reflecting on the extensive input from these discussions, the ILPA Best Practices Committee drafted a new release of the Principles. This release retains the key tenets of the first Principles release while increasing their focus, clarity and practicality.

We continue to believe three guiding principles form the essence of an effective private equity partnership:

  1. Alignment of interest
  2. Governance
  3. Transparency

New components in the updated Principles have been included to allow funds to adopt the guidelines more effectively and include:

  • An appendix on Carry Clawback best practice guidelines (given the complexity of this subject)
  • Increased clarity and description of the three existing guiding Principles
  • Expanded context around the purposes of key guidelines

Background

The ILPA released the original Private Equity Principles (the “Principles”) in September 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.

To read more about the Private Equity Principles Version 1.0, click here

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