What does GP mean?

General partner: generally refers to the management institution or natural person of equity investment fund, abbreviated as GP in English. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.

Extended data

GP has the right to:

1, service control

The general partner has complete management and control over the fund affairs and has the right to sign legal documents on behalf of the partnership fund, which is at the core of the limited partnership. According to Article 405 of the Limited Partnership Act of the United States, the partnership agreement can grant all or designated general partners the same voting rights as any kind of limited partners, individually or by other means.

2. Profit sharing right

The agreement usually stipulates that the general partner invests about 1% of the total capital of the fund, but enjoys a share of about 20% of the investment income of the fund. Of course, as mentioned above, the sharing base is usually the balance after deducting the principal and interest costs, and sometimes even the benchmark income is deducted, and the income is calculated according to the combination of all investment projects of the fund.

3. Annual management fee

The general partner can usually get 65438+ 0.5%~3% of the total amount of the partnership fund managed by him, which is mainly used for the daily expenses of the general partner in managing the fund, such as rent, office expenses and communication expenses.

References:

Baidu encyclopedia "GP"