What is the main function of an LPAC?

The primary function of a Limited Partner Advisory Committee (LPAC) is to provide guidance and advice on potential conflicts of interest that may arise in the management of a private equity fund. LPACs are typically composed of representatives from the limited partners (LPs) of the fund and are established to ensure transparency, protect the interests of LPs, and maintain integrity in the investment process. By addressing conflicts of interest, the LPAC ensures that the fund's management operates in the best interest of all investors, fostering trust and safeguarding the overall governance of the fund.

The other options reflect functions that do not align with the core purpose of an LPAC. Approving financial transactions usually falls under the responsibility of the fund’s management team or general partner, while fund marketing efforts are typically handled by dedicated marketing teams within the firm. Similarly, determining investment timing strategies is a function that is usually managed by investment professionals rather than the advisory committee. Therefore, the role of the LPAC is specifically focused on conflict guidance, distinguishing it from other potential responsibilities.