general Partners of real estate funds Seyfarth （房地产基金的普通合伙人,Seyfarth）.pdf

2012 a Primer on the standard of Care for general Partners of real estate funds r Pension plan investors have fiduciary duties to their stakeholders, so it is reasonable for these investors to seek out fund e sponsors that exercise a prudent standard of care with investors’ money. Despite initiatives such as the Prea Investor Toolkit and n IlPa that strongly encourage fund sponsors to heighten their governance and standard of care, some fund sponsors continue r to have partnership agreements with provisions that are not always obvious but often legally complex, which undermine the reasonably expected standard of care owed to investors. The language and underlying law of these provisions are technical and o may sometimes be overlooked, resulting in an investor underestimating the risks associated with the investment. The following C article focuses on these issues and provides guidance for investors on how to push fund sponsors to expressly state in the fund agreements the fiduciary duties that should be owed to the investors. r –sharmila Chatterjee Kassam o employees retirement system of Texas s One Of the seemingly eternal struggles in negotiating invest- will be referred to as the general partner, the investors as lim- n ments in real estate funds centers on the duty that the fund ited partners, and the fund as thepartnership. sponsor will owe to the investors. The usual situation is a standard definition of a fiduciary is “a person having o