Glossary · Fund economics

What is ILPA?

ILPA is the Institutional Limited Partners Association, an industry body of investors that publishes best-practice principles on fund terms, fee reporting and governance.

In practice

ILPA’s guidance is voluntary and has no legal force. It surfaces in LPA negotiations, side letter requests and due diligence questionnaires, where investors often measure a fund’s terms against its principles. Its best-known outputs are the Principles document and the reporting templates for fees, expenses and performance. Not to be confused with an LPA, which is the binding contract.

An example

Round numbers, not a real fund

Say an investor asks 20 managers to report fees in the ILPA template. Everyone reports in the same layout, so fees can be compared across funds.

Why it matters

Investors cite its principles when negotiating, and managers often adopt its templates.

A definition, not advice; where usage varies the entry says so. Something wrong? Tell the desk.

Related terms

LPAThe limited partnership agreement, or LPA, is a private fund’s main contract. It sets the fees, carry, investment limits and the rights of the manager and the investors.
Limited partnerA limited partner, or LP, is an investor in a fund. It supplies most of the capital, takes no part in running it, and typically risks only its commitment.
LPACThe LPAC, or limited partner advisory committee, is a small group of investors that advises the manager and usually approves conflicts of interest and certain term waivers.
Management feeThe management fee is the annual charge investors pay a manager to run a fund, often 1% to 2% of committed capital during the investment period.
Side letterA side letter is a separate agreement between a manager and one investor that gives that investor terms beyond the fund’s main documents, such as lower fees or extra reporting.

The terms, in the news each morning.

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