Peter Freire, a long-time veteran at CEB (formerly Corporate Executive Board), has some big shoes to fill.
Freire is taking the reins at trade organization Institutional Limited Partners Association from Kathy Jeramaz-Larson. Jeramaz-Larson has led ILPA for eight years and will be stepping down as the group’s leader at the end of the month, ILPA said in a statement Friday.
Freire spent 18 years as an executive at CEB and most recently worked with the World Economic Forum, and as an advisor and consultant to private companies. At CEB, Freire managed several strategic business lines and was responsible for CEB’s global portfolio of HR businesses. He also was responsible for CEB’s businesses in regions outside the U.S., including Asia-Pacific.
“Kathy leaves a tremendous legacy at ILPA having grown the organization from a small group of limited partners to a leading global private equity association with more than 318 members,” Mike Mazzola, ILPA’s chairman and managing director at MetLife Investments, said in a statement.
Under Larson’s leadership, ILPA grew from 140 to 320 members. She led the group through what was arguably the most transformative era for limited partners. After the global financial crisis, LPs found themselves with more leverage in negotiations with GPs than ever before. GPs, desperate to raise funds in the uncertain environment in 2009 and 2010, allowed for much friendlier terms and conditions, leading many to conclude the “pendulum” had swung to the LP side.
Under Larson’s leadership, ILPA helped codify the most desirable terms and conditions among fund investors, releasing two versions of its Private Equity Principles in 2009 and 2011. The principles, which ILPA stresses are best practices and should not be viewed as mandates, outline ways to achieve better alignment of interest, governance and transparency between the GP and LP.
The principles recommend best practices such as using a “European-style” waterfall distribution model, in which LPs are paid back all contributions, plus a preferred return before the GP starts collecting carried interest. The principles also state management fees should not serve as profit centers; that 100 percent of transaction, monitoring, directory, advisory and exit fees go to the LP; and that fund life extensions must be approved by a majority of LPs (or an LP advisory council).
ILPA also created reporting templates to try to standardize documentation around capital calls and distribution notices and quarterly reporting standards.
More recently, ILPA worked with Cambridge Associates to create its own private equity benchmark using funds from its own members. The result was a proprietary index of more than 1,800 funds, owned by ILPA’s own members, Buyouts previously reported.
Freire spent 18 years as an executive at CEB and more recently worked with the World Economic Forum, and as an advisor and consultant to private companies. At CEB, Freire managed several strategic business lines and was responsible for CEB’s global portfolio of HR businesses. He also was responsible for CEB’s businesses in regions outside the U.S., including Asia-Pacific.
Photo courtesy of LinkedIn