Glossary · role
General Partner (GP)
Also known as: GP
- Definition
- A General Partner is the active managing partner in a Limited Partnership structure. The GP runs the fund's investments, charges management and performance fees, and bears unlimited legal liability for partnership obligations.
In private-equity and venture-capital funds, the GP is typically a separate legal entity (often a Singapore Pte Ltd) which is itself owned by the fund-management firm. This insulates the operating firm from unlimited LP-level liability. GPs are paid via management fee (typically 2% of committed capital) plus carried interest (typically 20% of profits above hurdle).
Related
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