GP stands for General Partner, and LP stands for Limited Partner. General partners bear unlimited joint and several liability for the debts of the partnership, and limited partners shall bear debt liability based on the amount of capital they have subscribed. General partners

The person has comprehensive management and control rights over the fund affairs and has the right to sign legal documents on behalf of the partnership fund. According to the regulations, the general partner invests about 1% of the total capital of the fund and can enjoy about 20% of the fund's investment income.

Of course, the share base is usually the balance after deducting principal and interest costs, and sometimes base income, and the income is calculated based on the combination of all investment projects of the fund. Limited partners can calculate the income in currency, physical objects, intellectual property, land use rights or.

Other property rights can be used as capital contributions, but labor services cannot be used as capital contributions. Limited partners can transfer their property shares in the limited partnership according to the partnership agreement, but they must notify other partners 30 days in advance. Extended information 1. Priority sum of GP and LP.

1. Priority and “inferiority” represent the order of income distribution. Priority and inferiority represent different subscribers of p. The order of “priority” and “inferiority” is determined by income requirements and investor risk tolerance.

Under normal circumstances, after the priority obtains a lower fixed return, the inferior partner can obtain the remaining income. 2. Priority partners are generally risk-averse, and their demands are only to protect the principal and do not have high requirements for income; inferior partners are generally risk-averse.

Subordinate partners hope to "make a big impact with a small amount, but also bear greater investment risks. 2. Rights, responsibilities and benefit distribution of GP and LP 1. GP (general partner, i.e. fund manager) initiates a private equity fund and provides

LP (limited partner, i.e. investor) raises funds. GP is acted by a natural person (in the United States, GP is usually a natural person, in most cases in China, it is a limited liability company). The capital contribution is very low, usually 1%, but it bears the responsibility.

Unlimited joint and several liability; LP's capital contribution is limited to the amount of its capital contribution, and it bears limited liability. 2. The income sharing of private equity funds is as follows. If the income is within 10% (usually 8%), the LP will take all of it; if it exceeds,

For different funds, this ratio will be slightly adjusted.