Private equity institutions are divided into partnership system and limited company system, and the operation of their products is also different. What are gp and lp in private equity funds? Very necessary.

What does compulsory fund reduction mean? How to prevent conflicts of interest in funds?

I. GP

GP, the abbreviation of GeneralPartnerships, means general partnership, which consists of more than two partners, each of whom is jointly and severally liable for the debts of the partnership organization with his own personal property. This is a partnership in a narrow sense.

For example, at present, investment company A * * has four general partners, GP 1, GP2, GP3 and GP4, and all of them * * * own 0/00% of the shares of investment company A * * ... Therefore, the overall profit and dividend loss of investment company A are directly related to it.

General partnership has the following basic legal characteristics:

1. Established voluntarily by agreement;

2.*** With capital contribution, * * * enjoys profits;

3. Partnership, that is, all partners * * * jointly operate, have the same status, and are the owners of the partnership organization;

4. Partners shall bear unlimited joint liability for the debts of the partnership organization with their personal property.

Second, LP

LP is the abbreviation of Limited Partners, which means limited partnership, that is, there is at least one general partner and one partner with limited liability, and the limited partner is only liable for the debts of the partnership to the extent of its capital contribution.

Many times, a project needs to invest tens of millions or even hundreds of millions of funds. At the same time, most investment companies have projects in different fields and industries at the same time. The general partners of investment companies don't have that much money-or they don't want to invest so much company money in a project to share risks. There are always some people in this world who have a lot of cash in their hands, but they don't have a good investment method-putting interest in the bank is a pure loss in the financial world. Thus, LP was born. (Author: Wu Zeyong Source: Zhihu)

Limited partnership has the following basic legal characteristics:

1. Voluntary formation, but in addition to the agreement, there must be a limited partnership charter that meets the legal requirements, and the charter must be registered;

2. Both the limited partner and the general partner contribute and share the profits;

3. Limited partners do not participate in the operation;

4. The limited partner shall be liable for the debts of the partnership only to the extent of its capital contribution.