What is a general partner (GP)?
A general partner is an entity or individual responsible for managing a private equity fund, venture capital fund, or another similar investment vehicle. The GP directs the fund’s strategy, making investment decisions and managing the overall portfolio on a day-to-day basis to determine which assets to invest the fund’s capital into to ideally maximize returns.
GPs may also actively manage investments with strategic guidance and operational support. In certain circumstances, some GPs even take hands-on roles in the management of portfolio companies. They are typically compensated through management fees and carried interest.
The GP reports to the fund’s LPs about the overall financial performance of the portfolio. They may also share strategic updates with LPs to keep them in the loop.