Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

General Partner (GP)


The manager(s) of a venture capital or private equity fund, who are compensated based on the returns made on investments by the fund.

See Also

Private equity group, venture capital.


In the private equity world, the general partner (GP) is the fund manager, while the limited partners (LPs) are the institutional and high-net-worth investors in the partnership. The GP earns a management fee. Once limited partners receive a return of their capital (known as the hurdle rate), a percentage of profits is distributed to the limited partners (typically 80% to LPs and 20% to GPs).