As a general matter, here are some best practices in setting up a fund's LPAC:
- Check the LPA or governing document that describes the LPAC appointment process and details the LPAC's particulars;
- Ensure that LPAC members are people that the fund manager really trusts, as depending on the LPA, LPAC members may have quite a bit of power;
- Keep the LPAC as small as practicable, with the proviso that the LPAC should have an odd number of members to prevent any potential deadlock situations;
- For smaller funds, 1 to 3 members are ideal.
*Given the SEC's recent rules, the LPAC should not be used as an Investment Committee, nor should it vote on matters regarding conflicts of interest. More information can be found here: https://govclab.com/2023/08/25/sec-private-fund-adviser-reforms/