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PRIVATE-EQUITY-BASICS4 MIN READ

LP/GP Terms at Your Fingertips

Recall fund-structure terms and handle common LP questions about fees and alignment.

mixed-card-deck battlecard What does a limited partner provide in a PE fund? LPs commit capital to the fund and are generally passive on individual investment decisions. Their role is capital provider and fiduciary investor, not day-to-day portfolio manager. Fund role LP versus GP: who does what? The split explains why LP trust depends on mandate discipline and disclosure. Compare An LP says: "Management fees pay you even if returns disappoint." LP diligence or annual meeting. Your line The management fee funds the platform required to source and manage investments; we judge it against net returns and disclose fund expenses so…

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