ILPA’s Global Advocacy Strategy
ILPA’s Advocacy strategy is focused on three core objectives:
- Educating non-industry stakeholders (policymakers, regulators and the media) about the role of private equity in institutional investor portfolios and in the overall economy.
- Equipping ILPA members with intelligence and an early awareness of upcoming legislation and regulation, shifts in the political climate and resulting risks and opportunities for engagement, to help members plan for different scenarios.
- Leverage relationships built through educational outreach to engage with stakeholders in a way that can positively impact the debate.
The specific goals tied to these objectives are to:
- Educate government officials to consider ILPA as a resource on private equity and to consult with ILPA and our members on changes in legislation and regulation that impact a diverse array of global limited partners and their institutions.
- Elevate awareness about the perspective of Limited Partners in debates around investor protections and private equity, in particular that of organizations that are otherwise underrepresented.
The strategy is based on a limited but important number of issues on which to have a voice—on the rest ILPA will keep a watching brief. ILPA’s specific policy priorities and responses will shift over time but will be informed by an essential set of core shared values:
- Private equity is an important and essential component of institutional investors’ portfolio allocation and overall returns mix and a meaningful contributor to long-term economic growth and productivity.
- We seek greater transparency between managers and investors around fees and expenses.
- The continued availability of sound, efficient tax structures for investors is critical to encouraging cross-border flows of capital and long-term investment.
- The industry will benefit from enhanced disclosure around compliance issues both from managers and regulators.
- We support a considered approach to regulation that balances investor/beneficiary protections with commercial realities.
ILPA will pursue this strategy through a combination of direct engagement with officials, other industry bodies and the media, in a controlled and discerning way.
We believe that direct engagement with officials and policymakers is essential to achieving the full potential of our advocacy efforts, for multiple reasons. Ongoing dialogue with those directly involved in emerging and dynamic policy debates can highlight shifts in attitudes or priorities well before they emerge as fully formed legislative initiatives, allowing us the time and opportunity to develop intelligence to inform our members’ responses to various scenarios. We also consider it important that the leading body representing the interests of institutional investors is able to engage with government and elected officials in all markets where regulation can have meaningful impact on our members and their private equity investments.