What is Term Intelligence?
Term Intelligence is a searchable database of LPA terms that enables you to benchmark against the wider market. The groundbreaking new benchmarks provide investors, fund managers, law firms, placement agents, and advisors with visibility into market standards for the most scrutinized fund terms – such as management fees, term lengths, and expenses.
The benchmarks are designed to give you the insight you need to: conduct pre-investment due diligence, provide accurate advice to your investor or fund manager clients, draft competitive data-backed fund terms to secure allocations, or speed up negotiations with accurate, up-to-date data to benchmark fund terms against.
What's included?
Term Intelligence consists of several key components, each designed to help you benchmark fund terms against the wider market – these include Term Summary, Asset Class Comparison, and ILPA Compliance.
Term Summary
Within the Term Summary tab, the benchmarks cover the following categories:
Term length
Closings and investment period
Management fee
Carried interest
Escrow and clawback
Expenses
Credit facilities
You can filter by asset class, strategy, vintage, and fund size to compare against the funds most similar to the LPA you are benchmarking. The Term Summary tab gives you a comprehensive view of market standards for each fund term.
Asset Class Comparison
Asset Class Comparison provides insight into the variations between asset classes. You can add the asset classes you are most interested in for a side-by-side comparison of fund terms – including management fees, carried interest, escrow provisions, hurdle, interim clawback provisions, and waterfall type.
With the Asset Class Comparison tab, you can easily see which asset classes might be worth exploring or whether to expect discrepancies in typical fund terms.
ILPA Compliance
Gain a deeper insight into how closely the ILPA Principles 3.0 are followed by similar funds. Understand the number and proportion of funds that comply with the ILPA Principles – such as Term Extension, European Waterfall, Term Extension Management Fees, and more.
How does Preqin source the data for Term Intelligence?
Discover the methodology behind Term Intelligence and how Preqin sources the data collated in the benchmarks – Download the Term Intelligence Data Sourcing document
How do I access Term Intelligence?
Term Intelligence requires an additional subscription to your package. You can see if you have access to Term Intelligence by going to the Benchmarks tab in Preqin Pro and selecting 'Term Intelligence'. You will be re-routed to Term Intelligence if your firm already has a subscription.
Don’t have access? Speak to your account manager today to add Term Intelligence to your package.