General Partner¶
Definition¶
A General Partner (GP) is the manager of a private equity or growth equity fund. GPs raise capital from LPs, make investment decisions, manage portfolio companies, and eventually exit investments to return capital to LPs. GPs typically invest their own capital alongside LPs and earn management fees plus carried interest (a share of profits).
Context¶
In Ep. 20, Jake Colognesi describes the GP perspective on fundraising, noting that LPs evaluate GPs heavily on their sourcing capabilities. He references the Sea of Alternatives — a visualization of how many GPs are competing for the same deals and the same LP capital.
Related Terms¶
- Limited Partner — the investors that GPs raise capital from
- Private Equity — the asset class GPs operate in