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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.
Overall, becoming an LP in a typical VC fund requires money, knowledge of the risks and possible rewards, a long-term investment horizon, and a willingness to play a passive role. By meeting these requirements, investors can become LPs in a VC fund and benefit from the potential big returns.
An organization comprised of a general partner, who manages a fund, and limited partners, who invest money but have limited liability and are not involved with the day-to-day management of the fund.
Legal Structure. For example, some private funds are structured as limited partnerships, in which case, the partnership will have a general partner and investors will participate as limited partners. Other legal structures include limited liability companies and corporations.
The Limited Partnership is the main vehicle for the fund. Strictly speaking, it is not a separate legal entity, but is a partnership between the ?General Partner? and the ?Limited Partners?.
A limited partnership is a specialized form of general partnership. While it is very similar to a general partnership in most aspects, the limited partnership is made up of at least one or more general partners and at least one or more limited partners.
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.
Who are Limited Partners? LPs are the investors into private equity funds which are managed by a General Partner (GP) Like shareholders in a corporation, LPs have limited liability to the extent of their investment and have no management authority.