A general partner (GP) is the managing partner in a limited partnership who is responsible for the day-to-day operations and decision-making. Unlike limited partners, the general partner has unlimited personal liability for the partnership's debts and obligations.
In private equity and venture capital, the general partner is typically the fund manager who makes investment decisions, manages portfolio companies, and is responsible for generating returns. GPs earn management fees and carried interest as compensation.
For example, in a real estate limited partnership, the general partner manages property acquisitions, operations, and sales, while limited partners provide capital. The GP role carries significant responsibility and risk but also offers substantial rewards through performance-based compensation.