b'ILPA PRIVATE MARKETS EDGE Q1 20214 5What did we learn in 2020? As obvious and predictable asto acknowledge the need for improved practicesandobserversin2021.PolicydebatescenteredontheU.S.SHARED INTERESTS PRESENT the question might be, it warrants reflection. Because the2020 threw this into sharper relief. In fact, a Septemberprivate markets have restarted already as the Biden-HarrisOPPORTUNITYequally obvious answer is quite a lot. In the private markets2020 ILPA poll of several dozen LP professionals foundAdministration sets its agenda in motion and important context,dislocation,adaptation,liquidity,valuationsandthere was not a single major challenge related to LP Talentissues of fund access are at stake in Europe where theMeaningful and lasting change on DEI will require us to virtualwouldfeatureprominentlyinthe2020industrywhere a majority of members felt able to declare success.AIFMD is under review. ILPA remains actively engaged inmake principled choices about the industrys path forward. word cloud, and you will see this in the Top of Mind featureOf note, not one poll participant identified compensationthese and other discussions, ensuring the LP perspectiveWeareexceptionallyproudofandencouragedbythe later in this issue. We learnedor more accurately, wereas an area of success. These core LP Talent challenges areis well represented, and you can read more about theseinitial response to ILPAs Diversity in Action Initiative and remindedthattheindustryisresilient,creativeandcaptured in this issues Take Action section. topics in our Policy Corner. want to congratulate our nearly 100 signatories on their most importantly, powered by people. People who hadcommitment. For those of you who are considering joining to redefine risk management on the fly, tear down andAlso, in the Take Action section, ILPA takes another looktheInitiative,pleasereachouttodiversity@ilpa.orgto rebuild cash flow models, create a blueprint for remote dueat the 2020 LP Compensation Survey and related IndustryINDUSTRY SCRUTINY RESUMESlearn more. Our industry not only has an opportunity but diligence and piece together real-time valuation estimates.Intelligence report published last December. In this PrivateDespite real headwinds and uncertainty, there is reason toan obligation to lead on DEI in the year ahead. Expect to AndwhileportfoliomanagementactivitiesseemedtoMarketsEdgeIssueyoullfindanswerstoquestionsbe optimistic about the ongoing evolution of our industry.see much more from ILPA and our growing coalition on grow more challenging by the day, these same peopleaboutbenchmarking,compensationstructuresandtheThere are substantial overlapping interests and commonthis front in the coming months.were transforming spare bedrooms and kitchen tables intorelativeimportanceofnon-financialfactorsinretainingpurpose around Diversity, Equity and Inclusion. 2021 can home offices, navigating online grocery delivery, caringteam members. Importantly, however, both the Industryserve as an inflection point for progress. Not only have anEnjoy this issue of ILPA Private Markets Edge. We welcome for vulnerable loved ones and in many cases, supportingIntelligenceReportonLPCompensationandthisIssueincreasing number of organizationsLPs and GPs alike your feedback.children as they made the adjustment to online learning. should be viewed as the starting point for reenergizingmade a public commitment to prioritizing this work, but your talent efforts. We are already working to meet you atmanyarenowwillingtoshare,indetail,howtheyare Seeing the humanity of our colleagues and partnersandthe next step in the process with a staffing model resourceseeking to effect change, where they have seen the early they oursallowed us to connect in a different way in 2020.later in 2021. signsofsuccessandwhycertaininitiativeshavefallen- STEVE NELSON, CEOWe should all seek to hold onto that in 2021 and beyond. short. These candid, peer-to-peer exchanges are critical to Taking a step back from the Talent focus of this Privateaccelerating and multiplying our impact. Numerous ILPA RE-ENERGIZING TALENT EFFORTSMarketsEdgeIssue,itisworthrecallingwherethingsmembers remarked upon this momentum, predicting that stood in the first quarter of 2020. At that time, a varietyESG and DEI, respectively, will be primary areas of focus This fundamental lesson of 2020 is what led us to focusofreputationalchallengestreatmentofworkers,jobthis year in the Top of Mind for LPs section.theinauguralIssueofILPAPrivateMarketsEdgeoncreation (or destruction), income inequality, environmental LPTalent.Evenbeforetheonsetofthepandemic,sustainability, lack of transparency, lack of diversitywere attracting,developingandretainingprofessionaltalentcompetingforattentionwithtopicssuchasfundraising wasanear-universalchallengeforLPorganizations.momentum,elevatedpurchasepricemultiplesandTHE LEAD -Each quarter, ILPA Private Markets Edge Take Action section Thespecificsvaried,butwhetheritwasaquestionoftheprevalenceofsubscriptionlines.Unfortunately,theLP TALENT ANDfocuses on an issue facing LPs, providing actionable team size or composition constraining individual growthunderlyingreputationalissuespersisteveniftheyhave opportunities, compensation pressure leading to turnover,been partially obscured by the scale of the socio-economicCOMPENSATION recommendations that lead to better outcomes. physicallocationnarrowingthecandidatepooloranyresponsetothepandemic.Theindustryshouldexpect numberofotherissues,mostorganizationswerequickrenewed scrutiny from a wide range of stakeholders and WHATS INSIDE?IN THIS ISSUE MEMBERS WILL: LP TalentActionable ESGFund Terms Attract, develop andLP TechnologyGet inspired to Take Action on LP talent andUnderstand the changes and implicationsretain top talent for compensation of AIFMD in Europe and the Biden/HarrisHow to effectivelyUnderstand what long-term success Deploy and integrate Administration in the U.S. in Policy Corner integrate ESG intoterms are markettechnology effectivelyHear what is Top of Mind for LPs includinginvestment manager selection, technology and the rise ofFind ways to Get Involved in ILPA events,programsSPACs education and content'