Subscription Lines of Credit and Alignment of Interests

ILPA issued guidance to address how the utilization of subscription lines of credit impacts limited partners, with specific recommendations for greater disclosures and clarity in the partnership agreements regarding parameters for their use. While transparency has generally improved since then, inconsistencies remain in the quality and consistency of disclosures to LPs. To remedy this, ILPA released follow-on guidance focused on specific recommended quarterly and annual disclosures that will provide LPs the visibility they need to better monitor the impact of subscription lines on both exposure and performance, as well as the key terms and costs associated with subscription lines in use.