What role does the limited partner advisory committee (LPAC) play in GP-led secondary transactions?

The limited partner advisory committee (LPAC) plays a crucial role in GP-led secondary transactions primarily by having the responsibility to review and approve the transaction. In such scenarios, the general partner (GP) typically seeks input from the LPAC to ensure that the proposed transaction aligns with the interests of the limited partners and adheres to the terms outlined in the fund documents.

This function is essential because it provides a governance mechanism that allows limited partners to express their perspectives and ensures that their interests are represented in significant decisions taken by the GP. The review by the LPAC helps to enhance transparency and trust between the GP and limited partners, which is vital for maintaining good relationships and facilitating future fundraising and investments.

While the other options touch upon aspects related to fund operations and governance, they do not accurately describe the specific role of the LPAC in the context of GP-led secondary transactions. The LPAC's focus is primarily on the approvals related to transactions rather than managing capital, forming new funds, or overseeing compliance issues.