DIFFERENT TYPES OF ADVISORY BOARDS: LIMITED PARTNERS VERSUS PURE ADVISORS

As just indicated, in most cases, the advisory board of a private equity fund consists of representatives of several different Limited Partners. There is no finite size that advisory boards must consist of. In practice generally, advisory boards consist of three or five LPs but may go up to nine members. It is also worth noting that it is generally considered best practice for an advisory board to consist of an odd number of members to facilitate any dispute resolution and tie breaking. Advisory boards will typically meet at least once annually but may meet more frequently, contingent upon fund policy and any changes throughout the year that may occur in the management of the fund. Generally, the LPs on the advisory board will be some of t....