The Institutional Limited Partners Association (ILPA) has introduced a new template questionnaire designed to simplify and standardize the due diligence process in secondary transactions. This move aims to reduce the administrative burden for both general partners (GPs) and limited partners (LPs) involved in these complex deals.

The questionnaire requests GPs to disclose essential details, including transaction terms and historical asset returns. This standardization is expected to accelerate deal timelines and improve transparency. Historically, secondary market deals have been time-consuming due to the lack of standardized information exchange, which often required extensive back-and-forth.

This initiative could lead to greater efficiency within the private equity secondaries market, estimated to be worth hundreds of billions of dollars. Standardized information allows LPs to more easily assess the value of their investments and make informed decisions. It also streamlines the process for GPs seeking to sell assets.

Ultimately, the ILPA template is a welcome development. It promotes better data collection and sharing within the secondaries market. As the market continues to grow, expect more standardization efforts to emerge. The next step will be to see how widely adopted this template becomes and if it evolves over time.