ILPA Issues Guidance on Use of Subscription Credit Facilities

July 27, 2017

The Institutional Limited Partners Association (“ILPA”), the body that represents the international limited partner community, has recently issued a best practice guide to assist both investors and managers with the use of subscription lines in a fund context (the “Guide”). The Guide is the result of a collaboration between ILPA, investors, managers and other industry advisers and has been issued in response to investors’ increasing focus on the area in light of the trend of managers looking to expand the use of such facilities.

The Guide includes nine recommendations as well as a list of recommended due diligence questions. Broadly, the Guide encourages increased dialogue, both before subscription lines are put in place and afterwards, by way of investor reporting.

Whilst the Guide focuses on private equity funds, it is likely to be of use to stakeholders in other closed-ended private funds, including private debt funds.

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