Private Equity Law Report Quotes Steven Richman on PE Fund Formation Costs

Private Equity Law Report quoted Steven Richman, chair of Seyfarth's Institutional Investor practice, in its article, “ILPA Guidance Promotes Caps, Transparency and Cost Sharing Mechanisms for PE Organizational Expenses.” The piece, published on July 9, 2026, explores new guidance from the Institutional Limited Partners Association aimed at addressing rising private equity fund formation costs and improving transparency and alignment between GPs and LPs.

Richman highlighted the negotiating imbalance that can emerge between investors and fund sponsors, noting:

“An investor diligencing a potential $200-million capital commitment – which is likely to be significant for that fund – does not have anywhere near the $5-10-million negotiating budget of the GP. That dynamic can lead investors to feel a negotiating imbalance where the GP and their outside counsel are incentivized to continually resist what the investor believes to be reasonable comments.”

The full article is available here.