LPACs might, or might not, provide serious oversight of the GP but what is equally important is who is invited to be on the LPAC in the first place. Research that IFI Global conducted a couple of years ago into LPAC selection suggested that size is easily the most popular criterion for selection to the committee. Most GPs surveyed select LPs simply by size of their allocation to the fund. If an LP’s allocation constitutes at least 10% of the fund it is generally thought they have a right to be on the LPAC.

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Following on from last month’s review of fund governance in Cayman The NED continues its series examining fund governance and directors by jurisdiction with a look at Ireland. (Next month, Luxembourg.)

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