LP Advisory Committee

A committee of limited partner representatives consulted on conflicts of interest, valuation policies and fund extensions.

Example

The committee reviews a proposed transaction between two funds managed by the same firm.

Important

Its existence and composition indicate how conflicts will be handled over a fund's ten-year life.

Related terms

  • No-Fault Divorce — A provision allowing a supermajority of limited partners to end a fund's investment period without alleging wrongdoing by the manager.
  • Conflict of Interest — A situation in which a person's personal or other professional interests could influence their duty to act in another party's interests.

Lessons that explain it

  • The clauses that decide what happens when something goes wrong — Beyond fees and carry, a fund's agreement governs who must stay, how capital can be reused, what happens if LPs lose confidence, and what you are entitled to know. (12 min)

All 578 terms in the Investing glossary