gp is a general partner.

General Partner refers to the management institution or natural person of equity investment fund, abbreviated as GP in English. 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.

the general partner has full management and control over the fund affairs, and has the right to sign external legal documents on behalf of the partnership fund, which is at the core of the limited partnership.

the general partner can usually get a management fee of 1.5% to 3% of the total amount of the partnership fund he manages, which is mainly used for the daily expenses of the general partner for managing the fund, such as rent, office expenses and communication expenses.

the general partner usually needs to provide 1% of the total capital of the fund. Although this 1% ratio is relatively small, it is not a small amount for the general partner personally because the total capital of the fund is very large. The purpose of requiring the general partner to contribute capital is to make them share the risks with the limited partner and prevent them from taking excessive risks.

The general partner enjoys rights:

1. Operational control.

the general partner has full management and control over the fund affairs, and has the right to sign external legal documents on behalf of the partnership fund, which is at the core of the limited partnership.

according to section 45 of the limited partnership law of the United States, the partnership agreement may grant all or designated general partners the right to vote in the same place as any kind of limited partners * * * on specified issues, individually or in whole.

2. Profit sharing right.

The agreement usually stipulates that the general partner will invest about 1% of the total capital of the fund, but enjoy a share of about 2% of the investment income of the fund. Of course, as mentioned above, the sharing base is usually the balance after deducting the principal and interest costs, and sometimes even the benchmark income is deducted, and the income is calculated according to the combination of all investment projects of the fund.