1, with different concepts. LP refers to limitedpartner, which provides funds for venture capital companies, namely investors; GP refers to generalpartner, which is responsible for the operation and management of funds, including finding investment opportunities, managing portfolio companies, designing and implementing exit schemes, etc.

2. The amount of investment is different. Limited partners are the main providers of venture capital. In venture capital institutions with limited partnership, the investment ratio of LP is generally 99%. The contribution rate of GP is 1%.

3. Different responsibilities. LP has limited liability to investment companies and enterprises with the capital contribution as the upper limit; GP has unlimited responsibility for the selection and management of investment companies.

In the extended data private equity fund, the relationship between LP and GP is:

The first is partnership. Under most normal circumstances, LP and GP are bound to each other and need to face the problem of investment liquidity together.

Secondly, LP mainly encourages GP to actively participate in enterprise management; GP values the company according to the best possible estimate.

Refer to Baidu Encyclopedia: Private Equity Fund

Baidu Encyclopedia: Limited Partner

Baidu Encyclopedia:: General Partner