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. This Client Alert summarizes the principal changes from the prior ILPA guidelines.

Like the prior version of the ILPA Principles issued in September 2009 (the “2009 Principles”), 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 to clawbacks and financial reporting. Finally, the Revised Principles also feature a sample reporting template for capital call and distribution notices, which is one of five standardized templates that ILPA is developing in consultation with fund general partners (“GPs”).