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Find out what a General Partner (GP) is in the Private Equity sector

General Partner: Definition and explanation

20/4/2024
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A General Partner (GP) is an organization that manages an investment fund, usually called a [Private Equity] Fund (/en/blog/quest-ce-que-le-private-equity-pe).

These organizations are responsible for managing the fund's assets, which may include direct investments, loans, options, acquisitions, mergers and divestments. They are also responsible for developing and implementing investment and branding strategies, identifying new investment opportunities and overseeing the fund's performance. In addition, they may be responsible for ensuring that the fund complies with applicable regulations, rules and standards.

A PM is specially trained to manage funds and investments, and can be seen as primarily responsible for the fund's investment performance. A PM is usually paid a percentage of the fund's performance and may also be remunerated by fees.

PMs work closely with Limited Partners (LPs) (/blog/decouvrez-ce-que-sont-les-limited-partners-lps-dans-le-secteur-de-la-private-equity), who are institutional and individual investors in the fund, to ensure that they achieve their objectives within the fund. The LPs are also responsible for monitoring the fund's activities and executing investment strategies and operational decisions.

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