6 Intended Scope and Application The preferred private equity terms and best practices herein serve to inform discussions between each GP and its current and prospective LPs in the develop- ment of partnership agreements and in the manage- ment of funds. ILPA does not seek the commitment of any LP or GP to any specific terms, nor should the Principles be applied as a checklist, as each partnership should be considered separately and holistically. A single set of preferred terms and practices cannot provide for the broad variability of products, strategies and investor preferences across the market at any given time, nor account for every individual circumstance. This guidance is put forth as a road map for GPs and LPs to develop the same set of expectations when entering into any partnership, and to frame a more precise and specific dialogue between the GP and the partnership’s existing and prospective investors during the fundraising process and over the life of the partnership. We put forth that careful consideration of each of these preferred private equity terms and best practices will result in better investment returns and a healthier private equity industry. ILPA encourages all stakeholders—LPs, GPs and their advisers—to be transparent in their consideration and intended application of these Principles and the level of accountability. LPs are advised to clearly commu- nicate the extent to which adherence to particular ideas contained in this guidance are factored into their investment approvals process and/or their insti- tution’s investment policies. While ILPA is not seeking endorsements for this third edition of the Principles, expressions of support by GPs for the ideas herein are welcomed, and GPs are encouraged to notify their LPs of their progress in adopting elements of Principles 3.0. It is incumbent upon all partners to seek shared and mutual understanding of expectations related to adherence to this guidance and any assurances re- quired by either party. For the avoidance of doubt, while this guidance was crafted primarily for the use of practitioners in private equity, ILPA encourages stakeholders in other private markets to consider the adoption of relevant sections of Principles 3.0. OVERVIEW