Term Intelligence - FAQs
Answers to all your Term Intelligence questions in one space.
Data
Where does the benchmark data come from?
Colmore, a Preqin company, provides strictly anonymized and aggregated LPA information to ensure confidentiality. Colmore's team of in-house attorneys follow a robust process to extract and anonymize the data before it's shared for the creation of Term Intelligence benchmarks.
How many LPAs does the benchmark use?
We have access to over 2,500 fund agreements for benchmarking purposes – one of the largest databases of LPA terms globally and a figure that is on pace to double by the end of 2024.
Can I benchmark all 3,500+ funds?
At present, Term Intelligence features 300+ funds with vintages from 2019 onwards. Priority is given to recent funds to provide you with the most current terms for benchmark results. Over time, we will add the full backlog of 3,500+ LPAs to unlock features such as a time series analysis of term movements.
How do you keep the data current? LPA terms are always evolving.
Information captured from LPAs is regularly extracted and reviewed by a specialized team of attorneys. To access the most up-to-date terms, users can filter by fund vintage.
Can Preqin provide the data used in benchmarking?
No, data can only be shared on an aggregated and anonymized basis via the benchmark search results. This is to protect client confidentiality and any NDAs in place.
How do you ensure the quality of the data?
The LPA is reviewed by our in-house team of lawyers and subject to a rigorous set of checks, including automated data validation rules and secondary reviews by senior attorneys.
How is AI used for data extraction?
We are excited by AI developments but feel that its application to sophisticated LPA language is, for now, a compromise on data accuracy and quality. Our seasoned legal team performs data extraction as we continue to evaluate advancements in AI technology.
Benchmarking
Which LPA terms do you benchmark?
We benchmark both economic and non-economic terms. Economic terms include management fees, carried interest, expenses, clawback, escrow, and credit facilities. Non-economic terms include key person, GP removal (with and without cause), and indemnification.
There are lots of terms in the LPA. How did you choose which ones to benchmark?
Areas of the LPA most subject to negotiation, review, or regulatory scrutiny have been prioritized to provide you with the most sought-after market insights today. New LPA terms will be added to the benchmark based on feedback and demand. To provide your feedback, please email legalinsights@preqin.com.
I don’t see a term that I want benchmarked, what can you do for me?
Our team can provide ad-hoc reports on specific terms or a deep-dive into any area of the LPA, upon request. Please reach out to legalinsights@preqin.com regarding bespoke requests and pricing information.
What constitutes a benchmark?
We require at least five LPAs in a benchmark search result to preserve client confidentiality and offer a sufficient representative sample.
Can a user select the funds in a given benchmark?
Users can select benchmark criteria based on fund size, asset class, strategy, and vintage. The criteria selected must be sufficiently wide as to ensure a minimum of five funds make up the benchmark.
Can a client see the funds that make up the benchmark?
No, due to confidentiality agreements in place, fund and fund terms used in the benchmarking cannot be disclosed.
ILPA compliance analysis
What is ILPA?
The Institutional Limited Partners Association (or ILPA) is an organization of small and large institutional investors responsible for the ILPA Principles 3.0, a set of guiding principles outlining LPA terms and practices.
What is ILPA compliance analysis?
A new insight for understanding how aligned fund managers across various asset classes and strategies are to the ILPA 3.0 Principles, with terms analyzed against their corresponding ILPA principles.
Do you look at all ILPA 3.0 Principles?
We consider only the ILPA 3.0 Principles that relate to the LPA terms that we benchmark.
How does the scoring system work?
A traffic light scoring system is applied to each term, where “ILPA-compliant” is green, “Partially ILPA-compliant” is yellow, and “Non ILPA-compliant” is red.
General
How is Term Intelligence different from the Preqin Fund Terms database?
Term Intelligence is sourced from data extracted directly from LPAs, providing an unlimited scope of terms available for benchmarking and not limited to contributions from any outside party. In comparison, Preqin Fund Terms is historically a survey-driven database of voluntary contributions and publicly available sources. The two datasets are complementary and serve different uses.
Future features
Can I filter the benchmark by quartile performance?
We are exploring the ability to benchmark terms by GP performance, a key driver of fund economics and governance terms. Only Term Intelligence is in the unique position of comparing data from thousands of LPAs against a market-leading database of fund performance.
Can I filter the benchmark by sector?
We are exploring the ability to benchmark LPA terms by sector in a future release.
Will further LPA terms be added for benchmarking?
Yes, new LPA terms will be added to the benchmark based on market feedback and demand. To give your feedback, please email legalinsights@preqin.com. In the meantime, our team can provide ad-hoc reports of specific terms or a deep-dive into any area of the LPA, upon request. Please reach out to legalinsights@preqin.com regarding report requests and pricing information.
Technical
Can I download the full database?
To preserve the confidentiality of the underlying LPAs that feed the benchmark results, users are unable to download data at this time.
Can I select multiple values in a filter?
Yes, simply hold down the Ctrl key (command key on Mac) while clicking on the desired values.
How do I clear all filters and reselect?
To clear selections and reset the filters, look for the “Clear all filters” button near the filters. Clicking this will remove all selected values and reset the filter to its default state.
What should I do if I don’t see the filter values I need?
If you don’t see a filter value that you want, first clear all filters and then find the filter value. If it’s still unavailable, please email legalinsights@preqin.com to provide your feedback.
How should I handle slow loading times for the report?
Should you encounter slow loading times while accessing the report, kindly wait for the report to load completely. If the issue persists or if you believe there is a significant delay beyond normal loading times, please report the issue to legalinsights@preqin.com for further investigation and assistance.
Providing details such as the specific page or visual causing the delay, the approximate duration of the delay, and any error messages encountered can help us resolve the issue quickly. Our team is committed to ensuring a smooth and efficient user experience, and we appreciate your feedback to help us address any performance issues promptly.
What should I do if I encounter any technical issues?
If you encounter any technical issues or have questions about the report, please reach out to legalinsights@preqin.com for assistance.