limited partner

A limited partner is an investor in a partnership who contributes capital but does not take part in managing the business. Their liability is limited to the amount they invested, meaning they aren’t personally responsible for the debts or obligations of the partnership. This structure allows limited partners to benefit from profits and growth without the risks and responsibilities associated with operational decisions. Limited partnerships are often used in real estate, venture capital, and investment funds, where general partners manage the business, while limited partners provide financial support.