Limited Partners (LPs)

Limited Partners (LPs) are investors who provide capital to a fund, such as a private equity or venture capital fund, but do not take part in its day-to-day management. They rely on the fund’s general partners (GPs) to make investment decisions and manage the assets. In return, LPs typically earn a share of the profits generated by the fund’s investments. Their liability is limited to the amount of their invested capital, protecting their personal assets from the fund’s potential losses. LPs include institutions, wealthy individuals, and other entities seeking exposure to investment opportunities without direct management responsibilities.