Lower level and priority
1. Priority lp: Priority partners get the priority of income distribution according to the partnership agreement, and generally can get relatively fixed income.
2. Inferior lp: After the inferior partner gives priority to distributing the income to the priority partner, the inferior partner obtains the residual income or bears the loss.
Because the task with reduced priority occupies * * * resources for a long time, the process with the highest priority applying for this resource is always in a waiting state. At this time, other processes with higher priority than the process occupying resources but lower than the process waiting for resources will get the right to use the processor and end before the process with the highest priority in the waiting state, which is called priority inversion.
3. General partner: generally 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.
4. Limited partner (LP). That is, institutional investors and individual investors such as enterprises or financial and insurance institutions that participate in the investment, and these people only bear limited liability.
Inferiority is the biggest gain and the biggest risk, which plays the role of a safety mat. If the project produces losses, this is the highest priority loss.
The mezzanine is the middle of income and risk, and plays the role of the second safety cushion. If the project loses money, if it is not made up in time, it will be made up with mezzanine. The more mission of mezzanine is to expand leverage, which is also the soul of structured products.
Priority, basically no risk, most of the profits are fixed.
For example, the current stock matching project, namely umbrella trust, consists of priority (bank funds), inferior level (investment consultant) and mezzanine (private equity funds). This structure can be widely used in many investment fields.