A limited partnership agreement

  • Exists  between a Limited Partner (LP) and a General Partner (GP)
  • Forms a private equity fund with the purpose is to invest in companies
  • Companies received investment from the fund becomes its portfolio companies

LP: institutional and individual investors (discussed in video#3)

  • Has limited liability
  • Only gives partial capital upfront
  • Commits to giving all capital over the length of the fund (7~10 years)
  • Can exit from the commitment anytime through a secondary market

GP: private equity firm (discussed in video#5)

  • Has unlimited liability
  • Finds and manages investment
  • Calls LP for additional capital when new investment opportunities come

Resource for further information regarding LP agreements: The ILPA (Institutional Limited Partners Association) website

Free Resource

Private Equity Due Diligence Checklist: 10 Questions Family Offices Should Ask

Download Checklist

Are you a family office looking for private equity consulting?

Visit Mink Capital