Free private markets document generator
Private Markets Investment Policy Statement
Draft an institutional LP private equity allocation policy and private markets investment policy statement covering liquidity, pacing, diversification and governance. Turn an institutional portfolio's private equity allocation objectives and governance rules into an LP-ready investment policy statement.
What this generator covers
Inputs used by the document
- Institution & mandate: Institution, Effective date, Total portfolio value, Investment horizon
- Objectives & constraints: Return objective, Risk tolerance, Liquidity requirement
- Private markets policy: Target allocation, Policy range, Permitted strategies, Annual commitment pacing, Concentration limits
- Governance & monitoring: Decision authority, Performance measures, Review frequency
01
Purpose & scope
This Investment Policy Statement governs the private markets program of Foundation Investment Office effective January 1, 2027. It defines objectives, allocation parameters, portfolio construction, governance and monitoring standards.
02
Investment objectives
The program supports a Perpetual horizon and targets CPI + 5% net over rolling 10-year periods. Private markets should enhance long-term total return while preserving sufficient flexibility for the institution's broader obligations.
03
Risk tolerance
The institution's private markets risk posture is: Moderate-to-high; accept illiquidity for long-term excess return. Principal risks include illiquidity, valuation uncertainty, manager dispersion, concentration and commitment timing.
04
Liquidity policy
The program shall Maintain five years of projected net capital calls in liquid resources. Liquidity analysis must incorporate NAV, unfunded commitments, forecast calls, distributions and stressed realization timing.
05
Strategic allocation
For a $2.5bn portfolio, private markets has a 20% of total portfolio target with a permitted range of 15%-25%. Exposure will be measured using current NAV and monitored alongside unfunded commitments.
06
Program construction
Permitted strategies are buyout, venture capital, growth equity, private credit, secondaries and co-investments. The portfolio should diversify by strategy, manager, fund, geography, sector and vintage year while reserving capacity for selective secondary and co-investment opportunities.
07
Commitment pacing
Annual commitments should generally remain within $125m-$175m, subject to updated cash-flow forecasts, allocation gaps, expected distributions and market opportunity.
08
Concentration limits
Portfolio construction shall observe the following limits: 10% of private markets NAV per manager; 5% per fund; 25% per vintage year. Exceptions require documented Investment Committee approval.
09
Governance
Investment Committee approves commitments; staff manages pacing within policy
10
Monitoring & review
Performance will be evaluated using net IRR, TVPI, DPI, RVPI, PME and peer-vintage quartiles. The policy is subject to Annual policy review with quarterly monitoring, with documented exceptions and corrective actions.
How to use this document generator
Review the example assumptions, replace them with information from your own investment process, and check every statement against the governing documents and source data. The interactive version updates the draft immediately and can export it to Word or PDF without a login.
Template transparency
Draft status
This template creates an editable first draft. Review every statement against source data and governing documents.
Privacy and export
Inputs stay in your browser. Word and PDF exports are created locally and this page does not store your document.
Scope
This is a practical starting point, not legal, tax, or investment advice.
Template 1.0 · Reviewed 13 August 2026