General Partner

In a limited partnership, there are two classes of partner. The general partner runs the show — making investment decisions, signing contracts, and directing day-to-day activity. In exchange for that control, the GP classically accepts unlimited personal liability, meaning creditors can reach the GP's own assets if the partnership cannot cover its debts. Modern structures often use an LLC or corporation as the GP to limit that exposure in practice.

In the fund world — private equity, venture capital, real estate funds — the GP is typically the investment firm itself. It commits a small slice of capital alongside investors but earns carried interest (a share of profits) and a management fee as compensation for managing the fund. Families evaluating private equity or co-investments will encounter GP economics constantly, so understanding the role is foundational.

A common confusion: "general partner" describes a legal role, not a person's seniority title. A family might form a limited partnership where a family-owned LLC serves as GP — giving the family control over the entity while keeping individual members shielded as limited partners. Understanding who holds the GP interest, and what that means for liability and decision-making authority, matters deeply when reviewing family office legal entities.