The general partner (GP) is the manager of a private investment fund. The GP makes all investment decisions, sources deal flow, conducts due diligence, negotiates transactions, manages portfolio companies, and ultimately returns capital to limited partners through exits. The GP has full operational control of the fund and, in a traditional limited partnership structure, bears unlimited personal liability for partnership obligations.
In practice, GPs operate through a management company entity to limit personal exposure. The GP earns a management fee (typically 1.5–2.5% of committed capital per year during the investment period) and carried interest (typically 20% of net profits above the hurdle rate). GP-LP alignment is further reinforced by requiring the GP to commit a meaningful amount of its own capital to the fund — typically 1–3% of total fund size.