The Institutional Limited Partners Association has introduced the ILPA Private Equity Principles, which aims to strengthen the long-term viability of the asset class as an institutional
The Institutional Limited Partners Association has introduced the ILPA Private Equity Principles, which aims to strengthen the long-term viability of the asset class as an institutional investment strategy.
Through enhanced partnership governance, strong alignment of interests and improved investor reporting and transparency, the ILPA believes the limited partner and general partner communities, as well as other industry practitioners, will mutually benefit from an improved set of guidelines that reaffirm a focus on investment value creation.
"Private equity has become an important strategy for most institutional investors from around the world as overall returns from private equity have outpaced those of other asset classes over the long run," says Joncarlo Mark, chairman of the ILPA. "This is primarily the result of a traditionally strong alignment between general partners and their portfolio companies and a focus on growing these businesses. A similar alignment between the general partners and the supporting institutions that provide them investment capital will help ensure successful returns in the future."
The principles were developed through broad communication and coordination between a wide cross section of private equity investment institutions. This process included input from many of ILPA’s 215 member organisations from around the world, which provided feedback through roundtable discussions and a survey.
ILPA encourages and welcomes the formal endorsement of the ILPA Private Equity Principles from both members and non-members, including general partners, fund-of-funds and industry consultants. The principles are posted on the ILPA website at www.ilpa.org.
