General Partner (GP)
A general partner (GP) manages the daily operations of a private equity or venture capital fund and has unlimited liability for the firm’s obligations. GPs are responsible for making investment decisions, securing capital, and driving value creation in portfolio companies. They typically receive a management fee and performance-based compensation (carried interest) as compensation for their role in generating returns for limited partners (LPs).
Key Takeaways
- Manages daily operations and investments of a fund.
- Assumes unlimited liability for the firm.
- Earns fees and carried interest based on performance.
- Plays a key role in creating value for limited partners.
