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LP

Limited partner: an investor in a fund. Provides capital, has limited liability and no day-to-day control.

LP — Limited partner: an investor in a fund. Provides capital, has limited liability and no day-to-day control.

An LP's rights and protections are defined entirely by the limited partnership agreement and any side letters they've negotiated — unlike a GP, an LP has no inherent management authority, which is precisely the trade-off for limited liability.

Frequently asked questions

What rights does an LP have?

Rights are defined by the LPA and any side letters — typically including information and reporting rights, consent rights over certain fund actions, and participation on an LP advisory committee if applicable, but no day-to-day management authority.

Can an LP be forced out of a fund?

Only under specific circumstances defined in the LPA, such as repeated failure to fund capital calls — an LP cannot generally be removed simply at the GP's discretion.

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.

GPGeneral partner: the manager of a fund. Runs the strategy, makes investment decisions, and LPALimited partnership agreement: the constitutional document governing a fund's economics, g CommitmentCapital an investor has legally agreed to provide, whether or not it has been called.

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