Term Intelligence
Data sourcing

Together Preqin & Colmore create a powerful term benchmark

Where does Preqin source its data?
LPAs are provided by investor services offered by Colmore, a Preqin company. Information captured from LPAs is anonymized, extracted, and reviewed by our specialized team of in-house attorneys before being added to the Preqin Pro platform.

		Preqin	Colmore	Combined	Vision
Market data	LPA term data	–	●	●	Combining Preqin & Colmore datasets brings new benchmarks and insights to the market
	Fund performance data	●	–	●
	GP and fund data	●	–	●
	Investor data	●	–	●
Investor Services	Ethos data extraction	–	●	●	Colmore is a market leading LP private capital solutions provider
	HELIOS platform	–	●	●
	Fund administration	–	●	●
	FAIR (Fee validation)	–	●	●

Data you can trust

Data protection
Data Collection Agreement
Colmore has an agreement with its clients that client data, collected from financial reporting and legal documents, can be utilized on an aggregated and anonymized basis to provide benchmarking services. Preqin and Colmore never disclose client data.
Data privacy & integrity assurance
Preqin and Colmore ensures that any use or reference to any fund or company data statistics is in an anonymized and aggregated form and does not make the individual fund or portfolio company identifiable by third parties. This is achieved by ensuring that minimum size thresholds for benchmark universes are maintained.

Information security architecture
Security is an organization-wide concern that involves personnel, processes, and software. Increasing the number of applications and solutions a company needs to maintain, and the number of users it needs to service, leads to increased security concerns.
From an operational standpoint, Colmore has mitigated these risks through multiple avenues, including (but not limited to) ISO 27001 certification. In fact, Colmore has achieved the industry’s first ISO 27001 certification focused on LP data services and fund administration.

Legal terms and fund dates

Source
Legal terms used in the benchmarking are sourced from Limited Partnership Agreements (“LPA”) and their amendments, together with the relevant management and subscription agreements.
The LPA, amendments, management and subscription agreements, together, are the “LPA Documents.” The LPA Documents are provided by Colmore clients for fee validation purposes through Colmore’s FAIR product, which offers accounting and monitoring services.

Extraction process
Economic and non-economic terms are extracted from the LPA Documents by an in-house legal team into Colmore’s proprietary fund fee and legal platform, Ethos. Following this, the legal data is aggregated and anonymized and then transferred to Preqin, where it is used for benchmarking (the “Legal Data”).

Data quality assurance
Automated and manual integrity checks are run on the Legal Data in Ethos to identify any outliers and these are considered and addressed. In addition to this, the Legal Data is subject to second level review by the more senior members of the in-house legal team and by FAIR’s team of accountants and analysts.

Use case
The Legal Data is used for Term Intelligence benchmarking and ILPA compliance analysis purposes. Clients can select asset class, strategy, fund size and vintage as benchmarking criteria.
In order to maintain the anonymity of this data, we require a minimum of five underlying funds to create a benchmark. The specific fund agreements used are never disclosed to clients.

Breadth of data
Our database has access to 2,500+ private market funds across private equity, venture capital, real estate, infrastructure, private debt, and special opportunities.

Terms we benchmark

Term category	Economic terms	Includes ILPA compliance analysis?
Term length	Length of term
	Extension + extension approval threshold	●
Closings	Time between initial closing and final closings
	Closing extensions
Management fees	Early investor MF rate
	Early investor MF basis
	IP length
	IP extensions + approval thresholds
	IP ends on launch of successor fund?
	MF rate stepdown on launch of successor fund?
	MF basis stepdown on launch of successor fund?
	MF rate stepdown in achieving certain % of commitments invested?
	MF basis stepdown in achieving certain % of commitments invested?
	MF rate – inside IP
	MF basis – inside IP
	MF tiering – inside IP
	MF rate – outside IP
	MF basis – outside IP	●
	MF tiering – outside IP
	MF rate – after initial term
	MF basis – after initial term	●
	MF approval threshold – after initial term	●
	Director fee offset	●
	Monitoring fee offset	●
	Advisory fee offset	●
	Broken deal fee offset	●
	Transaction fee offset	●
Carried interest	Waterfall type	●
	Hurdle type
	Hurdle rate
	Catch up rate	●
	Carry rate
	Premium hurdle
	Premium catch up
	Premium carry rate
Expenses	Organizational expense cap
	In-house administration expenses
	Third party administration expenses	●
	Legal expenses
	In-house legal expenses	●
	External legal expenses	●
	Legal expenses as a result of external investigation of GP	●
	Investment consultants	●
	Operating consultants
	Travel expenses	●
	IT and software expenses	●
	Side letter expenses
	Bank fees
	Audit and tax preparatory
	Custody fees
Escrow and clawback	Escrow reserve %
	Final clawback	●
	Guarantee?
	Interim clawback	●
	Clawback type

Providing industry-leading fund terms solutions to provide clarity and confidence in your next LPA negotiation.
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Documents / Resources

PREQIN Term Intelligence Software [pdf] User Guide Term Intelligence Software, Intelligence Software, Software

References

• User Manual