What is an LPAC?

The committee is created by the LPA, which sets its size, how members are chosen and what it must approve. Seats typically go to larger or earlier investors, sometimes through side letters. Members act for their own institutions and are usually not paid. It advises rather than governs: it cannot direct investments or replace the manager, and it is distinct from the full investor meeting.

Say a manager wants to sell a company from its 2018 fund to its newer fund. The LPAC is usually asked to approve that conflict before the deal can happen.

It is the investors’ standing check on the manager between annual meetings.