1, with different concepts. LP means limited.

Partners (limited partners) provide funds for venture capital companies, that is, investors; GP means average.

Partners (general partners) are responsible for the operation and management of the fund, including finding investment opportunities, managing portfolio companies, designing and implementing exit plans, 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.

Extended data

In private equity funds, 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.

reference data

Sogou encyclopedia: private equity fund

Sogou encyclopedia: limited partner

Sogou Encyclopedia:: General Partner