Colmore announces launch of Term Intelligence
London, United Kingdom (Tuesday 6th June 2023) – Colmore, a Preqin company and an industry leader in services and technology for private market Limited Partners (LPs) and allocators, announced the launch of Term Intelligence. This groundbreaking due diligence solution provides LPs, General Partners (GPs) and Service Providers with powerful insights on Limited Partnership Agreement (LPA) fees and terms. Due to the complexity of LPAs, lack of standardization and limited data on fees and terms, the process of investing into a fund is complex and time consuming. It is difficult to know what LPA fees and terms are in line with the market and their cost implications across the life of the fund.
Term Intelligence is the first product available to LPs, GPs and Service Providers that can solve these challenges. The solution provides benchmarking, cost projection and compliance with standards and best practices for LPAs set by the Institutional Limited Partners Association (ILPA).
- LPA fees and terms are benchmarked against a selected peer group to determine if the LPA fees and terms are market.
- The cost projection module empowers users to understand the cost impact of specific LPA fees and terms, including management fees, carry and expenses, throughout the fund’s lifecycle.
- ILPA compliance analysis indicates how LPA fees and terms compare to ILPA’s model form LPAs and guiding principles, which have become the industry standard. Knowing whether LPAs comply with the ILPA model form LPAs and guiding principles can provide a helpful perspective for LPs during negotiations. And, when teamed with the benchmarking and cost projection analysis, becomes a valuable due diligence solution.
The findings on a specific LPA are presented in a committee-ready report delivered by Colmore’s in-house legal team and analysts. Term Intelligence levels the playing field, fostering confidence and clarity for all parties.
Term Intelligence benefits both LPs and GPs. On the LP side, Term Intelligence provides an added layer to legal diligence and ultimately empowers the negotiation process through its data driven benchmarking, cost projection of fees and terms and the ILPA compliance analysis. On the GP side, they are able to better understand if their LPA terms are aligned with the market, allowing them to proactively present fund terms to investors against a backdrop of marketstandard benchmarking.
Paul O’Shea, Senior Vice President, US, Colmore, stated, “Given the opacity of the private markets, Colmore’s mission has always been to develop solutions that equip our clients to make the best decisions. With Term Intelligence, we have the ability to fill a market gap using our top-tier data and expert legal team, making a substantial difference in LPA due diligence.”
Greg Durst, Managing Director, ILPA, stated, “It’s long been ILPA’s mission to achieve greater transparency, alignment and good governance across our private markets industry, and solutions like Term Intelligence contribute to that vision, particularly by providing LPs with data and insights that have historically been difficult to capture and analyze. We’re grateful that Colmore, a Preqin company, is bringing highly useful services like this to bear on behalf of ILPA members and LPs more broadly.”
Colmore, A Preqin Company, is a market-leading, technology-driven private markets investor services business focused on the Limited Partner and Allocator market. The business operates from five offices located in New York and Dallas in the US, London and Birmingham in the UK and Singapore. Colmore employs more than 260 professionals, with the business monitoring over 6,500 private market funds and 40,000+ holdings.