What is LP Advisory Committee (LPAC)?
The LP Advisory Committee (LPAC) is a group of LP representatives that advises the GP on conflicts of interest, valuation disputes, fund term extensions, and other governance matters. LPAC approval is required for many significant fund decisions.
The LPAC is typically composed of representatives from the fund's largest LPs and serves as the governance body for the fund. The GP must seek LPAC approval for matters such as: conflicts of interest, key-person event management, fund term extensions, valuation methodology changes, and GP-led secondary transactions.
LPAC membership is considered valuable by LPs because it gives them visibility into fund operations and a formal voice in governance. ILPA's model LPA includes detailed LPAC provisions that have become industry standard.
Also known as: LPAC, advisory committee, limited partner advisory committee