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Among its activities, ILPA publishes a set of best practices for private equity [[limited partnership|limited partnerships]], which are composed of limited and [[general partnership|general partners]]. ILPA released its most recent version of guidance, ILPA Principles 3.0, in June 2019.<ref>{{cite web |url = https://www.globenewswire.com/news-release/2019/06/27/1875060/0/en/ILPA-Releases-Principles-3-0-for-Private-Equity-Industry.html|title =ILPA Releases “Principles 3.0” for Private Equity Industry|publisher = GlobeNewswire, Inc. |accessdate = 2019-09-07| url-status= live}}</ref> ILPA publishes a code of conduct for the private equity industry, as well as specific guidance and checklists for limited partners. Additionally, ILPA publishes several model templates and standardized disclosure documents for limited partners.
Among its activities, ILPA publishes a set of best practices for private equity [[limited partnership|limited partnerships]], which are composed of limited and [[general partnership|general partners]]. ILPA released its most recent version of guidance, ILPA Principles 3.0, in June 2019.<ref>{{cite web |url = https://www.globenewswire.com/news-release/2019/06/27/1875060/0/en/ILPA-Releases-Principles-3-0-for-Private-Equity-Industry.html|title =ILPA Releases “Principles 3.0” for Private Equity Industry|publisher = GlobeNewswire, Inc. |accessdate = 2019-09-07| url-status= live}}</ref> ILPA publishes a code of conduct for the private equity industry, as well as specific guidance and checklists for limited partners. Additionally, ILPA publishes several model templates and standardized disclosure documents for limited partners.


ILPA is governed by a Board of Directors consisting of sixteen directors elected annually at the association’s Annual General Meeting.<ref>{{cite web |url = https://ilpa.org/board-of-directors/|title =Board of Directors|publisher = Institutional Limited Partners Association |accessdate = 2019-09-14| url-status= live}}</ref> Neil Randall, managing director of private equity for the [[Teacher Retirement System of Texas]], currently serves as Chair of the ILPA Board of Directors.<ref>{{cite web |url = https://www.alpha-week.com/news/ilpa-names-neil-randall-chair-board-directors||title=ILPA Names Neil Randall Chair of Board of Directors|publisher = AlphaWeek |accessdate = 2019-09-14| url-status= live}}</ref> Steve Nelson, a senior business executive formerly of [[Cambridge Associates]], became [[Chief Executive Officer]] of ILPA in March 2018.<ref>{{cite web |url = https://www.globenewswire.com/news-release/2018/03/09/1419873/0/en/ILPA-Names-Steven-Nelson-as-Chief-Executive-Officer.html|title =ILPA Names Steven Nelson as Chief Executive Officer|publisher = GlobeNewswire, Inc. |accessdate = 2019-09-07| url-status= live}}</ref>
⚫
==Membership==
Members of ILPA include public and corporate [[pension fund|pension funds]], [[Financial endowment|endowments]], [[Foundation (nonprofit organization)|foundations]], [[insurance companies]], family offices, and sovereign wealth funds. According to ILPA, its membership totals more than 500 investors representing over $2 trillion in private equity investments.<ref>[http://ilpa.org/about-ilpa/board/ Institutional Limited Partners Association Board]</ref>


==History==
The [[limited partnership|limited partner]] investor universe in private equity has historically been highly fragmented and individual investors, even the largest investors, often have limited ability to negotiate the terms of the individual [[private equity fund]]s to which they commit.
===Formation===
ILPA initially developed in the early 1990s as an informal network of 15-20 limited partners meeting semi-annually to discuss challenges facing limited partners.<ref>{{cite web |url = https://ilpa.org/about/|title =Who We Are: ILPA |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref> "A bunch of LPs would meet occasionally for cocktails, 20-30 people, to chat about trends, issues and investments in the private equity marketplace. We would review the state of the asset class, discuss strategies for success, talk about negotiating tactics and review industry and market trends," said ILPA’s first Chairman Rick Hayes.<ref>{{cite web |url = https://ilpa.org/wp-content/uploads/2015/07/2012-ILPA-Annual-Report.pdf | title =The ILPA Annual Report: 10 Year Anniversary Special Edition |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref>


Over the next few years, this working group gradually formed into an organized, not-for-profit association. During this time, ILPA meetings were held and decisions made through informal phone conversations, with a group of volunteers working on behalf of the group.
ILPA's education and networking functions allow greater communication and collaboration between investors. Its advocacy work seeks to improve transparency, governance and alignment of interests between limited and general partners in the private equity industry. ILPA was actively involved in discussions centering on the adoption of fair value accounting under of FAS 157.<ref>Mulvihill, Roger [http://www.altassets.com/knowledgebank/learningcurve/2007/nz12279.php Fair value reporting for illiquid investments: ready or not here it comes] {{webarchive|url=https://web.archive.org/web/20080528231309/http://www.altassets.com/knowledgebank/learningcurve/2007/nz12279.php |date=2008-05-28 }}. AltAssets.com, December 12, 2007</ref><ref>Fulman, Ricki. "[http://findarticles.com/p/articles/mi_hb5266/is_200111/ai_n20445162 Private equity organization grows]". Pensions & Investments, November, 2001</ref>

In February 2002, ILPA received its formal incorporation status in [[California]] as a not-for-profit association with 79 members.<ref>{{cite web |url = https://ilpa.org/wp-content/uploads/2015/07/2012-ILPA-Annual-Report.pdf | title =The ILPA Annual Report: 10 Year Anniversary Special Edition |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref> That same year, ILPA held its first Members’ Conference in Toronto.<ref>{{cite web |url = https://ilpa.org/wp-content/uploads/2015/07/2012-ILPA-Annual-Report.pdf | title =The ILPA Annual Report: 10 Year Anniversary Special Edition |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref> From there, ILPA elected a Board of Directors was elected to govern the organization, hired a dedicated staff to manage the organization’s daily activities, and drafted by-laws for adoption by ILPA’s membership.<ref>{{cite web |url = https://ilpa.org/wp-content/uploads/2015/07/2012-ILPA-Annual-Report.pdf | title =The ILPA Annual Report: 10 Year Anniversary Special Edition |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref>

In 2004, ILPA published its [https://ilpa.org official organizational website] as a portal for ILPA members.<ref>{{cite web |url = https://ilpa.org/wp-content/uploads/2015/07/2012-ILPA-Annual-Report.pdf | title =The ILPA Annual Report: 10 Year Anniversary Special Edition |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref>

In 2007, ILPA appointed its first Executive Director, Kathy Jeramaz-Larson, a senior business executive formerly of the [[CPP Investment Board|Canada Pension Plan Investment Board]].<ref>{{cite web |url = https://www.infrastructureinvestor.com/ilpa-names-new-executive-director/ | title =ILPA names new executive director |publisher = Private Equity International |accessdate = 2019-09-12| url-status= live}}</ref>

⚫
===Membership===
As a trade association, ILPA is dedicated to its members, who are private equity limited partners. In its nascent stages, ILPA’s membership consisted of a number of public and corporate pension funds, foundations, endowments, and family offices.<ref>{{cite web |url = https://ilpa.org/about/|title =Who We Are: ILPA |publisher = Institutional Limited Partners Association |accessdate = 2019-09-10| url-status= live}}</ref> These members were primarily concentrated in North America and Europe.

Over time, ILPA’s membership has grown to include [[insurance|insurance companies]], [[bank|banks]], [[sovereign wealth fund|sovereign wealth funds]], and [[development finance institution|development institutions]].<ref>{{cite web |url = https://ilpa.org/member-list/|title =ILPA Member List |publisher = Institutional Limited Partners Association |accessdate = 2019-09-09| url-status= live}}</ref> As of September 2019, ILPA’s membership features more than 500 limited partners, including some of the world’s largest institutional investors, such as [[Government Pension Investment Fund]], [[Kuwait Investment Authority]], and [[World Bank|The World Bank]].<ref>{{cite web |url = https://ilpa.org/member-list/|title =ILPA Member List |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref> Among its membership, approximately 60% is based in the United States, while the remaining 40% reside outside the United States in over 50 different countries.<ref>{{cite web |url = https://ilpa.org/about/|title =Who We Are: ILPA |publisher = Institutional Limited Partners Association |accessdate = 2019-09-12| url-status= live}}</ref> Collectively, ILPA’s membership manages roughly half of all global institutional private equity [[assets under management]].<ref>{{cite web |url = https://ilpa.org/about/|title =Who We Are: ILPA |publisher = Institutional Limited Partners Association |accessdate = 2019-09-09| url-status= live}}</ref>


==ILPA Private Equity Principles==
==ILPA Private Equity Principles==

Revision as of 14:45, 22 November 2019

Institutional Limited Partners Association (ILPA)
AbbreviationILPA
Formation2002
TypeTrade association
PurposeIndustry standards, education, events, advocacy, and research for private equity limited partners
HeadquartersWashington, D.C., U.S.
Membership
500+ institutional investors
Steve Nelson
Websiteilpa.org

The Institutional Limited Partners Association (ILPA), founded in the 1990s and incorporated in 2002, is the largest trade association in the world for institutional limited partners in the private equity asset class.[1] It is headquartered in Washington, D.C. and has an additional office in Toronto, Ontario.[2]

ILPA’s mission is to “engage, empower, and connect limited partners to maximize their performance on an individual, institutional, and collective basis.”[3] As the only global organization dedicated exclusively to advancing the interests of limited partners, ILPA serves its membership through events, education, industry standards, advocacy, research, and content.

Among its activities, ILPA publishes a set of best practices for private equity limited partnerships, which are composed of limited and general partners. ILPA released its most recent version of guidance, ILPA Principles 3.0, in June 2019.[4] ILPA publishes a code of conduct for the private equity industry, as well as specific guidance and checklists for limited partners. Additionally, ILPA publishes several model templates and standardized disclosure documents for limited partners.

ILPA is governed by a Board of Directors consisting of sixteen directors elected annually at the association’s Annual General Meeting.[5] Neil Randall, managing director of private equity for the Teacher Retirement System of Texas, currently serves as Chair of the ILPA Board of Directors.[6] Steve Nelson, a senior business executive formerly of Cambridge Associates, became Chief Executive Officer of ILPA in March 2018.[7]

History

Formation

ILPA initially developed in the early 1990s as an informal network of 15-20 limited partners meeting semi-annually to discuss challenges facing limited partners.[8] "A bunch of LPs would meet occasionally for cocktails, 20-30 people, to chat about trends, issues and investments in the private equity marketplace. We would review the state of the asset class, discuss strategies for success, talk about negotiating tactics and review industry and market trends," said ILPA’s first Chairman Rick Hayes.[9]

Over the next few years, this working group gradually formed into an organized, not-for-profit association. During this time, ILPA meetings were held and decisions made through informal phone conversations, with a group of volunteers working on behalf of the group.

In February 2002, ILPA received its formal incorporation status in California as a not-for-profit association with 79 members.[10] That same year, ILPA held its first Members’ Conference in Toronto.[11] From there, ILPA elected a Board of Directors was elected to govern the organization, hired a dedicated staff to manage the organization’s daily activities, and drafted by-laws for adoption by ILPA’s membership.[12]

In 2004, ILPA published its official organizational website as a portal for ILPA members.[13]

In 2007, ILPA appointed its first Executive Director, Kathy Jeramaz-Larson, a senior business executive formerly of the Canada Pension Plan Investment Board.[14]

Membership

As a trade association, ILPA is dedicated to its members, who are private equity limited partners. In its nascent stages, ILPA’s membership consisted of a number of public and corporate pension funds, foundations, endowments, and family offices.[15] These members were primarily concentrated in North America and Europe.

Over time, ILPA’s membership has grown to include insurance companies, banks, sovereign wealth funds, and development institutions.[16] As of September 2019, ILPA’s membership features more than 500 limited partners, including some of the world’s largest institutional investors, such as Government Pension Investment Fund, Kuwait Investment Authority, and The World Bank.[17] Among its membership, approximately 60% is based in the United States, while the remaining 40% reside outside the United States in over 50 different countries.[18] Collectively, ILPA’s membership manages roughly half of all global institutional private equity assets under management.[19]

ILPA Private Equity Principles

In September 2009, ILPA released a set of guidelines, the Private Equity Principles,[20] intended to provide a common set of terms which institutional limited partners could use as the basis for negotiation with fund managers.[21]

References

  1. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  2. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  3. ^ "Board of Directors". Institutional Limited Partners Association. Retrieved 2019-09-14.{{cite web}}: CS1 maint: url-status (link)
  4. ^ "ILPA Releases "Principles 3.0" for Private Equity Industry". GlobeNewswire, Inc. Retrieved 2019-09-07.{{cite web}}: CS1 maint: url-status (link)
  5. ^ "Board of Directors". Institutional Limited Partners Association. Retrieved 2019-09-14.{{cite web}}: CS1 maint: url-status (link)
  6. ^ "ILPA Names Neil Randall Chair of Board of Directors". AlphaWeek. Retrieved 2019-09-14. {{cite web}}: Cite has empty unknown parameter: |1= (help)CS1 maint: url-status (link)
  7. ^ "ILPA Names Steven Nelson as Chief Executive Officer". GlobeNewswire, Inc. Retrieved 2019-09-07.{{cite web}}: CS1 maint: url-status (link)
  8. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  9. ^ "The ILPA Annual Report: 10 Year Anniversary Special Edition" (PDF). Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  10. ^ "The ILPA Annual Report: 10 Year Anniversary Special Edition" (PDF). Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  11. ^ "The ILPA Annual Report: 10 Year Anniversary Special Edition" (PDF). Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  12. ^ "The ILPA Annual Report: 10 Year Anniversary Special Edition" (PDF). Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  13. ^ "The ILPA Annual Report: 10 Year Anniversary Special Edition" (PDF). Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  14. ^ "ILPA names new executive director". Private Equity International. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  15. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-10.{{cite web}}: CS1 maint: url-status (link)
  16. ^ "ILPA Member List". Institutional Limited Partners Association. Retrieved 2019-09-09.{{cite web}}: CS1 maint: url-status (link)
  17. ^ "ILPA Member List". Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  18. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-12.{{cite web}}: CS1 maint: url-status (link)
  19. ^ "Who We Are: ILPA". Institutional Limited Partners Association. Retrieved 2019-09-09.{{cite web}}: CS1 maint: url-status (link)
  20. ^ Private Equity Principles Archived 2010-08-20 at the Wayback Machine, ILPA website
  21. ^ Institutional Limited Partners Association (ILPA) releases the ILPA Private Equity Principles. Reuters, September 8, 2009


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