August 4, 2016
Leonard Green's Gulfstream G-IV - CC - Andrew W. Sieber

Wall Street Journal Reports: Travel Expenses Enter LPs’ Radar Screens

On July 5, 2016 Wall Street Journal‘s Chris Cumming reported: “Travel Expenses Enter LPs’ Radar Screens”.

The article (available with a subscription here) states that: “With regulators and limited partners demanding more transparency on fund expenses, some private-equity firms are taking a new look at one small but potentially inflammatory line item: private jets.”

The article mentioned Leonard Green & Partners: “Earlier this year, Leonard Green & Partners LP disclosed it would no longer bill portfolio companies the cost of flying private. Although Leonard Green said it decided to make the change last year, the disclosure came shortly after the firm endured a public relations headache over its use of private jets.”

The Wall Street Journal highlighted the rising focus of limited partners on expense allocation and the SEC’s growing concern on fee transparency.

UNITE HERE wrote a report in February noting that since 2011, Leonard Green’s three private jets had flights to and from locations such as Aspen, CO (18 flights), The Bahamas (12 flights), Cabo San Lucas (14 flights), London (10 flights), as well as Turkey, Italy, France, Korea and Japan.

UNITE HERE reported in March that Leonard Green’s 2016 ADV disclosed changes to private jet billing policy.

 

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