Private Capital Expenses

For the first time, using Preqin Term Intelligence data, we examine the landscape for private capital fund expenses, analyzing the apportionment and trajectory of key expenses arising in limited partnership agreements

• Organizational expense caps, which limit fund setup costs charged to the partnership, have increased as a proportion of fund size for vintages 2020–2023

• A considerable proportion of LPAs are silent on who pays certain partnership expenses; adopting the ILPA Reporting Template may offer clarity for both parties

• LPAs often lack clear wording on GP use of private air travel to meet LPs or Limited Partner Advisory Committees. Where private air travel can be expensed to the partnership for these purposes, LPAs rarely specify limitations