LP is a limited partner (Limited Partner), which we can simply understand as an investor.

Many times, a project requires tens of millions or even hundreds of millions of funds to be invested.

(Most investment companies have many different projects under their umbrella.) The GPs of investment companies do not have so much money or they are unwilling to invest so much company funds in one project in order to share risks.

GP is the general partner (General Partner). Most of the time, GP and LP exist at the same time.

And they mainly exist in companies that require large amounts of capital investment, such as private equity funds (PE, Private Equity), hedge funds (Hedge Fund), and venture capital (Venture Capital).

Partners refer to organizations and individuals who invest in a partnership and participate in partnership operations. They are the main body of the partnership.

The first thing a partnership has is a partner.

Partner is a relatively common concept in law. It usually refers to a natural or legal person who invests its assets in a partnership, participates in partnership operations, enjoys rights and assumes obligations in accordance with the agreement, and bears unlimited (or limited) liability for corporate debts.

Partners should have civil rights capacity and behavioral capacity.

Extended information: Partners’ capital contribution methods: (1) After a partner contributes capital, generally speaking, he loses the ownership of the property that is part of his capital contribution. The subject of the property rights of a partnership is the partnership, not each individual partnership.

people.

(2) If a partner privately transfers or disposes of partnership property before the partnership is liquidated, the partnership shall not use this against a bona fide third party.

(3) Transfer of partners’ property shares ① When general partners transfer all or part of their property shares in a partnership enterprise, the other partners must be notified.

②External transfer Unless otherwise provided in the partnership agreement, when a general partner transfers all or part of his property share in the partnership to a person other than a partner, he must obtain the unanimous consent of the other partners.

③ If a priority partner transfers his share of property in the partnership to a person other than a partner, under the same conditions, the other partners have the right of first refusal; however, unless otherwise stipulated in the partnership agreement.

(4) If a general partner contributes capital based on his share of the property in the partnership, he must obtain the unanimous consent of the other partners; if his actions are invalid without the unanimous consent of the other partners and thus cause losses to a bona fide third party,

The perpetrator shall bear the liability for compensation according to law.