Governance Framework

A governance framework establishes decision-making authority, reporting structures, and oversight mechanisms for funds and investment vehicles, protecting LP interests.

Governance BodyRole
GP / Investment ManagerDay-to-day decisions, investment execution
Investment CommitteeApprove major investments and dispositions
Advisory Committee (LPAC)LP-elected oversight of conflicts, valuations
Board of directorsSPV-level governance
AuditorIndependent financial verification
AdministratorNAV calculation, reporting
Key Governance RightsProtection
Approval thresholdsMajor decisions require LP or IC consent
Conflict managementLPAC reviews related-party transactions
Removal rightsLPs can remove GP for cause
Amendment restrictionsMaterial LPA changes require LP supermajority
Information rightsQuarterly reporting, annual audits, data room access
Valuation oversightIndependent appraisals, LPAC review

Related Terms

Investment CommitteeLPACFund Governance Limited Partnership Agreement Oversight

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