Private Capital Fund Terms Advisor 2026: Part 1

This first part of this year’s Private Capital Fund Terms Advisor examines recent trends in LP–GP terms of negotiation from a transparency and governance standpoint. We will analyze annual changes in fees exclusively in a second report later this year

• Softer fundraising has shifted negotiating power toward LPs, leading to incremental improvements in fund terms

• We examine the costs and benefits of LPs committing at first or final close, including fee discounts and reducing blind pool risk

• GP commitments generally meet ILPA-defined standards, but higher commitment levels are not consistently linked to stronger fund performance