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.

Limited Partner (LP)

Definition

A partner in a company who is not liable for losses beyond their original investment and who is protected from legal actions. This term often refers to a limited partner or the investors of a private equity fund, such as pension funds and insurance companies.

See Also

General partner, venture capital.

Tips

The general partner of a company is liable for the actions of the partnership, unlike the limited partner, who is not liable for losses beyond their original investment.