Limited Partners
What
A limited partnership (LP)—not to be confused with a limited liability partnership (LLP)—is a business owned by two or more parties. These must include at least one general partner who runs the business and has unlimited liability for any debts. The limited partners have liability only up to the amount of their investment. The limited partnership business structure is often used as a vehicle for individuals who pool their money to invest in real estate or other assets
What Is a Limited Partner? A limited partner invests money in exchange for shares in a partnership but has restricted voting power on company business and no day-to-day involvement in the business. A limited partner’s liability for the firm’s debts cannot exceed the amount that they have invested in the company. Limited partners are often called silent partners.
Institutions! Welcome to the Limited Partner base!
When a fund institutionalizes, it means that institutional investors join the LP base. This typically happens when a manager passes through the emerging phase by accruing experience running at least three funds.