Private Equity funds are usually set up as Limited Partnerships in which Limited Partners (LP) give or arrange money to be invested but do not make investment decisions or undertake daily management of the fund. LP give money to General Parners (GP) who then invest the money. LPs are often high networth individuals and institutions. General partners (GP) are professionals who have direct control over the investments and are liable for the investments.The liability of Limited partners (LP) in private equity is limited to their full investment.
Disclaimer
Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.
« Back to Financial Terms Dictionary