ILPA Principles


ILPA’s Private Equity Principles were developed to encourage discussions between Limited Partners and General Partners regarding fund partnerships in Private Equity. ILPA produces best practices aimed at improving the private equity industry for the long-term benefit of all industry participants and beneficiaries.

ILPA continues to assert that three guiding principles form the essence of an effective private equity partnership: alignment of interest, governance, and transparency. With these guiding principles in mind, this third edition of the ILPA Principles includes guidance on:

  • GP and Fund Economics
  • Fund Term and Structure
  • Key Person
  • Fund Governance
  • Financial Disclosures
  • Notification and Policy Disclosures
  • LP Disclosures

The principles herein form the essence of an effective partnership beneficial to all parties and are intended as a base level of recommended best practices.  ILPA encourages stakeholders in alternative asset classes outside private equity to consider the adoption of relevant sections of Principles 3.0.

Feedback and questions should be directed to [email protected].

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 of 2009, ILPA surveyed its membership to gather input 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 ILPA solicited additional feedback from the LP and GP communities. An updated version (Principles 2.0) was released in January 2011 to address certain issues requiring additional focus, clarification or consideration of practical implications.

The third edition of the Principles – published in June 2019 -- builds on prior versions by addressing an expanding array of issues, taking into consideration evolving industry and policy dynamics impacting private equity fund partnerships. As in prior editions, this version incorporates ideas and suggestions accumulated via extensive dialogue with a range of constituencies across the private equity industry.

To further elevate the Principles 3.0 and to encourage their adoption globally, ILPA, working with the Jingtian law firm and the Limited Partner Association of China (LPACN), released a Chinese translation of the guidance in August 2020. ILPA also released a Spanish translation of the guidance in 2022 in collaboration with Asociación Mexicana de Capital Privado (AMEXCAP).