What is General Partner (GP)?
A general partner (GP) is the firm that raises, manages, and makes investment decisions for a fund. GPs earn a management fee and a share of profits (carried interest) in exchange for managing limited partners’ capital.
The general partner (GP) is the management entity of a private fund — the firm that sources deals, makes investment decisions, manages the portfolio, and ultimately returns capital to investors. Unlike limited partners, the GP has unlimited liability for the partnership and full operational control.
GPs are compensated through a management fee (typically ~2% of committed capital per year) and carried interest (typically ~20% of profits above a hurdle). The GP also usually invests its own money into the fund — the "GP commit" — to align its interests with LPs.
Also known as: GP, fund manager