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The Blackstone Group L.P. is managed by our general partner, which is owned by our senior managing directors.
A private equity firm is called a general partner (GP) and its investors that commit capital are called limited partners (LPs). Limited partners generally consist of pension funds, institutional accounts and wealthy individuals.
Some states only require that the certificate contains the name of the limited partnership, the name and address of the registered agent and registered office, and the names and addresses of all of the general partners.
The private equity fund is an entity in itself. Private equity funds are usually established as a Limited Liability Company (LLC) or a Limited Partnership (LP). The reason the fund is its own entity is the fact that it offers benefits for those involved in these limited partnerships.
The limited partnership agreement outlines the amount of risk each party takes along with the duration of the fund. Limited partners are liable for up to the full amount of money they invest, while general partners are fully liable to the market.
Individuals can invest in real estate as either a general partner or limited partner, and there are certainly pros and cons to each. Most individuals will opt to invest as a limited partner, as this is the best way to earn truly passive income. Other benefits to investing as an LP include: Greater deal exposure.
A limited partnership is a business structure similar to a general partnership. However, they have the addition of limited partners who invest in the business but who, unlike a general partner, are not involved in the day-to-day operations of the business.
A general partner (or 'GP') is in charge of managing a private equity fund. Specifically, they determine which businesses to acquire and how they should be managed. The GP is typically a company composed of professional investors and business managers.