General Partner

A general partner (GP) is a person or entity that actively participates in the management of a limited partnership (LP). GPs have unlimited liability for the debts and obligations of the LP, while limited partners (LPs) have limited liability up to the amount of their investment.

GPs are responsible for the day-to-day operations of the LP, and they are also responsible for making all major decisions about the business. They are also entitled to a share of the profits and losses of the LP, in addition to their management fee.

The role of a GP can be very demanding, and it requires a high level of skill and experience. GPs must be able to manage their time effectively, and they must be able to make sound financial decisions. They must also be able to work well with others, and they must be able to build a strong team of professionals.

GPs are typically compensated for their work in a variety of ways. They may receive a salary, a share of the profits, or a combination of the two. They may also receive bonuses or other incentives based on the performance of the LP.

The role of a GP is an important one, and it is essential for the success of any LP. GPs must be able to manage their time effectively, make sound financial decisions, and work well with others. They must also be able to build a strong team of professionals.