LP Advisory Committee

A committee composed of representative limited partners in a litigation finance fund, typically convened to review and approve matters requiring investor input under the fund's governing documents, including conflicts of interest, valuation methodology disputes, and certain material changes to fund strategy or key-person provisions. Advisory committee members generally do not participate in individual investment decisions, preserving the fund manager's investment discretion, but they serve as a structured forum for addressing governance issues that arise over a fund's multi-year life, particularly in an asset class where portfolio valuation is inherently judgment-dependent and conflicts between fund-level and manager-level economics can arise around waterfall timing and carry calculation.

Because mark-to-model valuation disputes and carry-timing conflicts are more likely to arise in litigation finance than in asset classes with observable market pricing, LP advisory committees in this space are typically more actively engaged than in comparable private equity structures, particularly around valuation methodology reviews. Fund managers view a well-functioning advisory committee as a credibility asset in future fundraising, since institutional investors evaluating a new commitment often ask how previous valuation or conflict disputes were actually resolved through that governance channel.