Scale#it

Scale#It is a Knowledge and Competency resource for entrepreneurs to strengthen governance and investors to fuel their knowledge of this asset class. This platform is under construction. Click on this banner to sign-up to be informed of new articles as they are released.

What is the difference between the General Partners and the Limited Partners?
Play Video

What is the difference between the General Partners and the Limited Partners?

Published on 18/08/2022
Contributor(s): Harold Grosfils

In a fund, a distinction is made between general partners (or GPs) and limited partners (or LPs). GPs are the fund managers who handle the day-to-day management and the entire investment process. LPs are the ones who invest in the fund, and do not have to manage all investment decisions, which they delegate to the GP. The GPs are therefore also the ones who call the capital pledged by the LPs and redistribute the profits. In practice, the PMs also invest in the fund alongside the LPs. This is good for the alignment of interests and for them to have what is called “skin in the game”.

Other videos for Entrepreneurs and Investors

What are Sherpas and lead investors?

What are Sherpas and lead investors?

Read it

How is a Private Equity fund manager remunerated?

How is a Private Equity fund manager remunerated?

Read it

What are TVPI and DPI?

What are TVPI and DPI?

Read it

What is the difference between the General Partners and the Limited Partners?

What is the difference between the General Partners and the Limited Partners?

Read it

What is Private Equity?

What is Private Equity?

Read it

What is the IRR and when is it used?

What is the IRR and when is it used?

Read it

Other articles by Harold Grosfils

What are Sherpas and lead investors?

What are Sherpas and lead investors?

Read it

How is a Private Equity fund manager remunerated?

How is a Private Equity fund manager remunerated?

Read it

What are TVPI and DPI?

What are TVPI and DPI?

Read it

What is Private Equity?

What is Private Equity?

Read it

What is the IRR and when is it used?

What is the IRR and when is it used?

Read it

What is the difference between pre-money and post-money valuation?

What is the difference between pre-money and post-money valuation?

Read it

What is the WACC?

What is the WACC?

Read it

What is a Discounted Cash Flows analysis?

What is a Discounted Cash Flows analysis?

Read it

I am an entrepreneur

...and I want to scale up!

We can help finance your venture

Learn how

I am an investor

TheClubDeal Fund II still accepts commitments

See what TheClubDeal can offer

Learn More

Subscribe to our Newsletter

We seek to customise the content to the segments we serve.

These are both fund investors and the entrepreneurs with whom we have created alliances.

We are happy to keep in touch.

Subscribe to Scale#It

We are currently building the portfolio of resources to scale ventures with resilient governance.

This newsletter allows you to be kept informed of the new articles published by TheClubDeal.

TheClubDeal Fund II Anniversary

We are celebrating 1 year of investments into 5 promising ventures in Belgium and northern France.
Learn more in our video…