ILPA Guidelines: Version 2.0 Offers Greater Flexibility for LPs and GPs

The Institutional Limited Partners Association ("ILPA") released Version 2.0 of its Private Equity Principles (the "Revised Principles"), offering a revised version of ILPA's take on the best practices in establishing private equity partnerships between limited partners ("LPs") and fund managers.¹ This Client Alert summarizes the principal changes from the prior ILPA guidelines.

OVERVIEW

Like the prior version of the ILPA Principles issued in September 2009 (the "2009 Principles")², the Revised Principles continue to focus on three guiding principles for developing effective partnership agreements - Alignment of Interest Between GPs and LPs, Fund Governance and Transparency to Investors – while revising some of ILPA's prior recommendations within each category. The Revised Principles also include an updated Appendix A describing the role and best practices of the LP Advisory Committee ("LPAC"), and two new appendices that cover terms and best practices relating