General Partner(GP)

The term General Partners(GP) Investor is synonymous with Sponsor. GPs or Sponsors are responsible for investment management, creating decisions with respect to the schemes that an investment partnership must follow. Real estate investment companies, developers, and financial institutions generally assume the role of General Partners in a real estate project.

 

They are in control of managing the fund’s portfolio, which contains the total fund’s investments. Besides, a GP originates an investment and sources debt and equity financing, thereby assuming a much more active role than passive limited partner investors. Therefore, they are remunerated with a management fee which is a fixed percentage of the total amount of the fund’s capital on an annual basis. Usually, this percentage ranges from 1% to 2% of the total capital invested.

 

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.