1. Risk isolation: As GP assumes unlimited joint and several liability in limited partnership funds, if a fund management company directly becomes GP, if a fund under management has legal/debt disputes, it will affect the operation of the whole fund management company. By setting up a holding subsidiary, the risk of the fund with problems can be isolated at the subsidiary level without affecting the operation of the whole fund company.

2. Independent accounting: each fund must pay management fees and shares to GP, and the management fees paid by the fund are used for fund management and investment. When a fund completely withdraws from liquidation, it is necessary to calculate the income obtained by GP company. If a fund company manages too many funds, and all of them take the fund management company as GP, then the expenses and income of each fund are mixed together, and it is difficult to clearly account for their own income on a single fund.

3, local arbitrage, some places have many preferential measures, such as tax incentives, investment returns and so on. For these preferential policies, it is of course necessary to set up another general practitioner.