The ILPA’s Private Equity Principles were developed to encourage discussions between Limited Partners and General Partners regarding fund partnerships in private equity.
- Alignment of Interest
Our three guiding principles form the essence of an effective partnership beneficial to all parties, and are intended as a base level of recommended best practices. The Private Equity Principles have been well received by the industry, and help promote its long-term health.
History & Background
In March 2009, ILPA members met for a series of round tables regarding the state of the industry and its governance. A working committee was formed to help craft a set of principles meant to restore and strengthen the inherent “alignment of interest” value proposition to private equity.
Over the summer, ILPA surveyed its membership to gather popular opinion regarding partnership governance, alignment of interests, and reporting transparency. A comment period was later broadened to include the GP community and other industry though leaders, providing more balanced and complete perspectives.
The Principles were first released in September 2009 and throughout the following year the industry weighed in, providing its feedback and areas for improvement. An updated version (Principles 2.0) was released in January 2011 increasing the clarity and descriptions of the three guiding principles, and adding an appendix dedicated to Carry Clawback.
Endorse the Principles
The Private Equity Principles have received broad support from a wide range of industry participants:
- Limited Partners
- General Partners
- Law Firms
- Placement Agents
- Data Providers
For a complete list of supporting institutions by name, please view our: