The Alignment Gap: Rethinking Costs in Private Equity Fund Formation

ILPA’s guidance addresses rising organizational expenses in private equity fund formation. The guidance responds to growing concerns among Limited Partners (LPs) about cost escalation, limited transparency, and insufficient accountability during the fund formation process. The guidance is designed to provide a practical, market-informed framework for all parties involved in the fund formation process to address rising organizational expenses by setting clearer expense caps, ensuring equitable cost‑sharing when budgets are exceeded, and increasing transparency around legal fees and budgeting.