We can simply understand it as an investor. Many times, a project needs to invest tens of millions or even hundreds of millions of funds.

Most investment companies have many different projects) and the gp of the investment company doesn't have that much money or doesn't want to invest so much company money in a project to share risks.

2.GP is the general partner.

Many times GP and LP coexist. And they mainly exist in some companies that need a lot of capital investment, such as private equity (PE), Hedge Fund, venture capital and so on.

Extended Information Limited Partner (lp) and General Partner (gp) can be divided into the following legal provisions:

1. Liability for corporate debts

According to the provisions of the Partnership Enterprise Law, a limited partnership consists of a general partner and a limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.

It can be seen that the general partner's commitment to the company's debts is greater than that of the limited partner.

2. Dealing with this enterprise.

According to the provisions of the Partnership Enterprise Law, unless otherwise agreed in the partnership agreement or unanimously agreed by all partners, the general partner may not conduct transactions with the partnership enterprise.

A limited partner may conduct transactions with the limited partnership. Therefore, in related party transactions, the law allows limited partners to trade with enterprises.

References:

Baidu encyclopedia -LP