Institutional Limited Partners Association (ILPA)

📢 Calling all ILPA Diversity in Action initiative signatories! Our new DIA website is LIVE. Head over to diversity.ilpa.org to explore how we’ve made your signatory benefits more accessible to you, including a calendar of upcoming events, replays, helpful resources, updates and more!

Join Neal Prunier, ILPA’s Managing Director of Industry Affairs, for an industry-wide discussion on our collaborative Quarterly Reporting Standards Initiative (QRSI) and the resulting updated ILPA Reporting Template and new ILPA Performance Template now open for public comment. Register today to be a part of the conversation.  https://lnkd.in/ejdC9JF4

We're just weeks away from the registration deadline for the 2024 ILPA Summit! ILPA Members - have you secured a spot for you and your team? Check out some of the highlights from last year’s event, and make sure to register today! https://lnkd.in/eqz_m5i5

Registration for the 2024 ILPA Summit closes in just one month on October 4th! Don’t miss your chance to attend the premier private equity event for Limited Partners worldwide! Register today!

Join ILPA for an in-depth industry discussion on the new NAV-Based Facilities Guidance for Limited Partners and General Partners. This webcast will dive into the guidance from various industry angles and explore how to effectively implement these recommendations. Don’t miss out! https://lnkd.in/eKZSjctm

#ILPAupdate: We've submitted a comment letter on the U.S. Treasury Department’s proposed rule-making on U.S. Outbound Investments to ensure that the final rule does not result in negative unintended consequences for U.S. LPs. Get the details: https://lnkd.in/euggKxJz

#ILPAupdate: Today we launched a public comment period to solicit feedback on updated and new quarterly reporting standards and templates for our industry, specifically an updated ILPA Reporting Template and a new ILPA Performance Template. “We’re grateful to be leading this push for greater alignment and transparency and are counting on thoughtful feedback from across the industry to help us finalize a collective approach that will shape quarterly reporting for years to come,” said ILPA Managing Director Neal Prunier. We need your input: https://lnkd.in/e7nsPHKT

There's still time to register! https://lnkd.in/eqz_m5i5

A few Friday thoughts— Summer is flying by but there have been some meaningful highlights in a short amount of time. One was time very well spent in the UK with the ILPA community in June (followed by my own family of four making the rounds in England, Scotland and Iceland!). ILPA’s sixth annual LP-GP Roundtable in London yielded some terrific insights on how LPs and GPs are navigating the current liquidity-constrained environment. The optimism (hope?) was palpable that rates would rise, M&A would resume and exits would return. Nonetheless, LPs are adapting—refining their strategies, decreasing the number of manager relationships, weighing greater allocations to the lower middle market. There, they said, they can represent a larger percentage of a fund and have increased access to co-investment opportunities. On liquidity, we've heard loud and clear that 1) GPs are, as expected, creative in seeking solutions and 2) LPs are concerned when creativity surges too fast, too far without transparency. Participants at the roundtable agreed that NAV facilities—where used appropriately—can be an effective financial tool. But at this moment, LPs need more insight into when, how and to what end these facilities are being used by their GPs. And their use is not only increasing but expected to grow sixfold by 2030, according to Pitchbook. So it stands to reason that ILPA would issue guidance on NAV-based facilities. Rather than passing judgment, we’ve canvassed LPs, GPs and lenders to devise balanced recommendations for how the industry can embrace more transparent and consultative practices around the use of NAV facilities. Take distributions, for example. The use of NAV-based facilities to generate early distributions impacts IRR/DPI and conveys additional cost through interest expenses associated with these vehicles. Distributions generated through NAV-based facilities are often recallable, which presents additional challenges for LPs. Our recommendation here is straightforward; prior to a NAV facility being put in place, GPs should provide the rationale and seek LPAC approval if they intend to use any of the proceeds to generate a distribution. At the end of the day, productive dialogue among LPs and GPs ensures that everyone is in alignment, which is essential to the success and continued growth of our industry. Take a look and leave your thoughts in the comments below. Our full guidance is available on the ILPA website here (summary graphic shared below): https://lnkd.in/ebzkFtkZ

While NAV-based facilities can be a useful tool for capital structuring or to provide financing to support assets, current practices surrounding their use present concerns for LPs.   Our new guidance sheds light on LP concerns while providing practical recommendations aimed at improving the transparency and engagement that are essential to the LP/GP partnership. Get the guidance: https://lnkd.in/etgV3mNM