The Institutional Limited Partners Association is publishing a deal-by-deal model limited partnership agreement and term sheet to serve as a template for the industry.

“We are delighted to release the deal-by-deal model LPA, both for our members, who can have confidence in the balance and transparency it provides and for our industry partners who will benefit from reduced fundraising time and cost as they look to structure new funds,” noted Steve Nelson, chief executive officer of the ILPA, in a press release. “This document provides a practical application of the ILPA principles and we encourage our members to use the model LPA documents as a starting point for any terms discussion with a [general partner].”

The model agreement is intended to serve as a tool for the private equity industry. The ILPA is encouraging GPs to adopt its use because it represents an opportunity to mitigate ongoing industry challenges such as the time consuming, costly and complex nature of typical negotiations.

“This new model LPA version is a helpful addition to provide more options to GPs in the marketplace and therefore promote wider adoption for the benefit of all industry participants,” added Chris Hayes, senior policy counsel for the ILPA. “The publicly available nature of our templates is meant to address the obvious challenges associated with the confidentiality restrictions typically imposed upon fund documents.”