Capital Call & Distribution Best Practices

From the LP’s perspective, capital call & distribution notices (“Notices”) are the initial basis for its monitoring and fiduciary reporting duties. Notices are expected to enhance an LP’s understanding of how capital is being allocated, while allowing a GP to efficiently manage cash flow requirements.

After extensive consultation with GPs, LPs and third-parties, the ILPA developed guidelines for the expected level of content in Notices. To establish consistency in reporting, it also created a Notice template that can be used by the entire industry.