Limited Partnership
A limited partnership is a business structure where general partners manage the company’s day-to-day operations and have unlimited liability, while limited partners contribute capital but have no managerial duties and limited liability. This structure is common in private equity and venture capital, allowing passive investors to fund deals without assuming the risks of operational management.
Key Takeaways
- Business structure with general and limited partners.
- GPs manage operations and LPs provide capital.
- LPs have limited liability and no management duties.
- Common structure in private equity and venture capital.
