US partnerships: the last governance frontier

In the mid part of this decade it looked like there would be much more independent oversight of partnership structures coming to the US in future. But that does not appear to have materialised. If anything, governance standards at US partnerships have regressed in the last few years.

In the absence of board structures at US private funds there had been a growing trend by GPs to create advisory committees to reassure investors. LPACs were well established in the private equity world but nothing equivalent to them was common in the hedge fund industry or in other areas of the alternative asset management business. Now, outside private equity LPACs, advisory committees may have passed their peak.
 
To read more on this story see the August issue of The NED.

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