Should GPs Support the ILPA Principles?
I have been fielding these same questions from my GP, LP and other industry colleagues: “What do you think about the ILPA Principles?” (soft voice) “How do you think it will affect my business?” (worried voice) “They don’t matter – we go through this every ten years when LPs try to get the upper hand.” (with bravado) Others are either more certain in their opinion or not so sanguine and believe that this effort will have a long term (and dependent on your perspective) positive or deleterious impact on the industry. A few LPs, smaller ones and non-ILPA members are even cowed by the impact feeling that the “big dogs” are dictating their ability to enter into funding opportunities. I’ve been most surprised by the few on the record comments by industry members and in particular the lack of specific statements by GPs. It’s pretty hard to disagree with common sense. I see nothing offensively troubling in the document. In fact, it has offered a kind of first hand self-review opportunity for the industry. I know. I know. We GPs are supposed to rebel instinctively against any proposal by an LP that governs or restricts our ability to do business. Bull! We appeal to Pension Funds, endowments, banks and other institutions for fund capital and want as few restrictions as possible. After all, this is capitalism, no? Atlas will not shrug his great burden but rather heave the world as we know it if these socalled Principles become ubiquitous. Hardly.
