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GP

General partner: the manager of a fund. Runs the strategy, makes investment decisions, and takes the carried interest.

GP — General partner: the manager of a fund. Runs the strategy, makes investment decisions, and takes the carried interest.

The general partner bears unlimited liability for the fund's obligations under the traditional partnership structure, in contrast to limited partners whose liability is capped at their commitment — a distinction with real legal weight beyond just describing who makes investment decisions.

Frequently asked questions

What is the difference between a GP and an LP?

The GP manages the fund, makes investment decisions, and bears unlimited liability for its obligations; LPs provide capital, have no day-to-day control, and have liability limited to their commitment.

Is the GP the same as the management company?

Related but distinct — the GP is typically the specific legal entity that is a partner in the fund itself, while the management company is the broader operating business employing the team.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

LPLimited partner: an investor in a fund. Provides capital, has limited liability and no day Management companyThe operating business that runs the funds — employer of the team and recipient of managem GP commitmentThe manager's own capital in the fund. Allocators care about the amount relative to the pa

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