Fund Information. Related Party Transactions and Conflicts of Interest.

Purpose

Fund formation documents will typically describe the mechanisms for disclosure of related party transactions and disclosure of and resolution of conflicts of interest, which will involve reporting either to Limited Partner Advisory Committee (LPACs) or to all Limited Partners (LPs) as appropriate.

Related party transactions in respect of fees earned by the General Partner (GP).

Any such reporting should ensure the LPAC or LPs are provided with sufficient information to judge the appropriate treatment of such matters.

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Requirements

The information below should be reported for the current reporting period. References to specific sections of the fund formation documents should be made where relevant.

• Overview of related parties and nature of relationship;
• Comprehensive statement of related party transactions, for example co-investment arrangements, interests in portfolio companies held by other funds managed by the same GP, significant suppliers or customers of portfolio companies controlled by related parties of the GP, fees paid by portfolio companies on behalf of the fund;
• Conflicts may arise throughout the life of the fund and where not addressed in advance in the fund formation documents, will typically need to be dealt with promptly through LPAC discussion. Resolution of any material conflicts by the LPAC should be disclosed to all LPs in the next quarterly report.

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In certain circumstances, most notably in the case of a Venture fund, some of the information may be considered confidential and therefore not disclosed; however, such non-disclosure should be agreed with LPs to ensure appropriate disclosure is still being made.