The NED has been told many times that selection of fund directors is a random process, too often dependent on who you know, as opposed to what you know. As a result it is undertaking a number of projects to help professionalise the selection process.

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Results of a major global study on private equity fund governance show a significant degree of disparity in LPAC development. The research has just been released. It was conducted by IFI Global’s research department, The NED’s parent, and Vistra. It is first global study on private equity fund governance ever undertaken.

The research suggests that LPAC development is in a period of real transition. Should this continue a great deal further, in terms of LP involvement in the fund, it could lead to questions as to who is ultimately in charge.

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