The Institutional Limited Partners Association (ILPA) Releases the ILPA Private Equity Principles

TORONTO -

- Guidelines Intend to Create Framework for Sustainability and Growth of Asset Class Through Improved Governance, Alignment of Interests and Transparency

The Institutional Limited Partners Association (ILPA) today introduced the ILPA Private Equity Principles, which establishes a set of principles and best practices for the private equity industry with the goal of strengthening 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. This approach has historically served as the key tenet to the success of the asset class.

“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,” said 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 ILPA Private Equity 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 organizations from around the world, which provided feedback through roundtable discussions and a comprehensive survey that ultimately generated the concepts proposed in this document.

“The ILPA’s mission is to provide networking, communication and ongoing research and education - including the development of best practices - that will help our members and other industry participants improve their investment capabilities and performance,” said Kathy Jeramaz-Larson, Executive Director of the ILPA. “The ILPA Private Equity Principles will establish an operating framework for investors to engage in ongoing dialogue and to develop improvements that will benefit the industry for years to come.” In conjunction with the release of this document, ILPA has formed a new Best Practices Committee that will focus on continuing to strengthen private equity as an asset class by soliciting input from other private equity practitioners and by utilizing the Private Equity Principles as a living document to incorporate changes as warranted in the future.

In addition, 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 ILPA Private Equity Principles are posted on the ILPA website at www.ilpa.org. A list of institutions that wish to be formally recognized as signatories to the Private Equity Principles will also be posted and updated on a regular basis.

The Institutional Limited Partners Association is a not-for-profit association committed to serving limited partner investors in the global private equity industry by providing a forum for facilitating value-added communication, enhancing education in the asset class and promoting research and standards in the private equity industry. ILPA has over 215 institutional member organizations that collectively manage approximately US$1 trillion of private equity assets. For a copy of the ILPA Private Equity Principles or for more information about ILPA, please visit www.ilpa.org.

For further information: Kathy Jeramaz-Larson, Executive Director, ILPA, +1-416-941-9393 ext 1, kjeramaz-larson@ilpa.org, www.ilpa.org/

Source: Institutional Limited Partners Association (ILPA)

For further information: Kathy Jeramaz-Larson, Executive Director, ILPA, +1-416-941-9393 ext 1, kjeramaz-larson at ilpa.org