The VC/PE industry often says that the "standard and usual" GP contribution ratio of limited partnership private equity funds is 65,438+0%, which comes from a provision in the early partnership enterprise law of the United States, requiring GP's committed contribution to account for 65,438+0% or more of the total fund. In the standard limited partnership agreement, there is usually a clause about subscribed capital contribution, which stipulates that the general partner (GP) should subscribe the percentage of the total subscribed capital contribution of the limited partnership fund. In foreign limited partnership fund agreements such as USD, the contribution ratio of GP is usually 1%.

The commitment of GP in limited partnership fund is an important means to ensure the consistency of interests between GP and LP. The main considerations include:

1, Guangzhou Pharmaceutical's commitment reflects the financial strength of Guangzhou Pharmaceutical, and indirectly reflects Guangzhou Pharmaceutical's ability to make money, operate funds, repay debts and even raise funds.

2. Private equity investment is a high-risk investment activity, and the whole fund operation is operated by GP. In order to prevent GP from harming LP's rights and interests and engaging in reckless investment, GP has invested 1%, which can play a certain inhibitory role to some extent. Only after the contribution of GP, once the contribution of LP cannot be recovered due to the failure of fund investment, the contribution of GP will also suffer losses, even more. In addition, according to the characteristics of limited partnership, GP should bear unlimited liability for the debts of the fund. Through capital contribution and unlimited liability, the interests and responsibilities of GP are closely combined.