Limited Partner Advisory Committees
Peter Mixon, along with John Kasic, Senior Portfolio Manager of Colorado PERA and Neil Randall, Private Equity Director for the Teacher Retirement System of Texas, served as a special guest speaker during the National Council on Teacher Retirement's (NCTR) webinar on “Limited Partner Advisory Committees” on November 20, 2019.
As public pension plan investments in alternatives such as private equity have continued to grow, the importance of limited partner advisory committees, or LPACs, has also increased. LPACs are not mandatory, but most private investment funds have them. Generally, they have responsibility for reviewing conflicts of interest; approving valuations; reviewing requested waivers of restrictions in the partnership agreement; and similar functions. LPACs thus serve an important fiduciary role in overseeing the general partner’s management responsibilities. However, LPACs are not always structured with the interests of the limited partners in mind and there can be governance issues in their operation.
To find out more about this increasingly important aspect of investing in private equity, NCTR hosted this members-only webinar that addressed the role of LPACs in asset management as well as the best practices for their formation, structure and governance from the standpoint of limited partners. The webinar also addressed the status of LPAC members, their responsibilities to the investment fund, and protection from potential liability that the investment fund should provide for all members.