The Institutional Limited Partners Association is calling for public comment on its questionnaire template covering diversity, equity and inclusion metrics, as well as updated questions contained in its widely-read due diligence questionnaire.
The comment period remains open until September 24, after which ILPA plans to release new versions sometime in the fourth quarter of this year. Kari Grant, ILPA’s director of strategic communications, says that the association hopes for the broadest possible range of people to comment on the changes, including LPs, GPs, placement agents, third-party service providers and even academics. Feedback submission forms are available on the organization’s website, where a full account of all the changes can be found.
The ILPA DDQ is its most downloaded resource. The diversity metrics template sits alongside the DDQ questionnaire and can track the annual progress toward diversity goals over time. Metrics include a host of information on ethnic and gender identity diversity at various levels of a firm, as well as retention statistics, for example.
Speaking on the ESG portion of the DDQ revisions, Neal Prunier, director of standards and best practices, said the thrust of ILPA’s DDQ questions drives more at the process of generating opportunities and value creation at the portfolio company level, compared to previous iterations concentrated mainly on risk. “This is the most comprehensive revision in eight years, since the DDQ’s initial launch. That’s why we’re hoping for robust feedback,” Prunier said.
New sections and questions have been added to the revised DDQ covering areas of relatively new concern, including GP-led secondaries and continuation funds, credit facilities, data security, technology and third-party providers. New questions relate to recruiting, retention, remote work, performance appraisals, technology tools and training.
The ESG revisions draw on the recently updated United Nation’s PRI (Principles of Responsible Investing) Limited Partners Private Equity Responsible Investment DDQ.