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PE Glossary

GP (General Partner)

GP · The fund manager responsible for raising capital, sourcing deals, managing portfolio companies, and executing exits. GPs invest their own capital alongside LPs and earn management fees and carry.

Example

The GP of a buyout fund manages the day-to-day investment process · sourcing deals, negotiating terms, sitting on portfolio company boards, and ultimately exiting investments. The GP typically commits 1% to 5% of fund size from its own balance sheet to align with LPs.

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