Glossary
General Partner (GP)
General Partner (GP) refers to the fund management company that establishes and manages a Private Markets fund and takes all investment decisions. The GP bears unlimited liability for the obligations of the fund entity and receives management fees and Carried Interest as compensation.
At a glance
- The GP takes all operational and strategic investment decisions within the fund.
- The GP's compensation structure typically consists of a management fee and Carried Interest.
Frequently asked questions
Key criteria include the consistency of the track record across multiple funds and market cycles, the stability of the investment team, and the quality of the deal flow network. Transparency in reporting and alignment of interests through a meaningful co-investment by the GP team are also important considerations.
Part of the topic
Private Markets
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.