ILPA updates members on activities

ILPA‘s (the Institutional Limited Partners Association) latest member update includes items on:

• a comment letter in response to SEC’s proposed Interpretation on the standard of conduct for investment advisers, which among other things suggests that advisers of private equity funds should treat the fund as a whole as its client and not the individual limited partners. ILPA generally supported SEC’s proposals but is concerned at the practice that has developed of allowing advisers to contract out of fiduciary duties to limited partners. It thinks private equity advisers should not be allowed to include these “hedge clauses” in their documentation;
• its work on a new Model Limited Partnership Agreement, due to launch early next year;