ILPA updates Private Equity Principles

The report is available on their website.

The first version of the ILPA principles, published in September 2009, was formally endorsed by 140 industry organizations. The new principles will continue with the three guiding tenets: Alignment of Interest, Governance and Transparency; while further incorporating feedback solicited from GPs, LPs and industry third parties. New components include an appendix on Carry Clawback best practice guidelines; increased clarity and description of the three existing guiding Principles and expanded context around the purposes of key guidelines.

"Since the Principles were first launched in 2009, communication between LPs and GPs has been enhanced, improvements with respect to alignment of interests have been recognized and GPs have been proactively contributing to the ongoing development of the ILPA best practices," said Tim Recker, Chairman of the ILPA in a statement.

"Moving into 2011, alignment of interest, governance and transparency will become even more important to strengthen private equity as an asset class, especially as liquidity returns to the market, investments shift towards global emerging markets where risk exposures increase, and investors become more discerning about the various asset classes post-financial crisis," added Recker, who is also Managing Director of Private Equity for the University of California Regents.

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