The Role of General Partners in Private Equity Firms
You lead the direction, decision-making, and performance of a private equity fund as a General Partner (GP) —taking on legal responsibility, securing capital commitments, executing investments, and managing portfolio value to generate strong returns. This article gives you a deep, actionable look at the GP’s responsibilities, authority, and financial incentives throughout the fund lifecycle. You’ll learn how GPs operate, how they work with Limited Partners (LPs), and how they shape strategies that ultimately determine fund success. What is a General Partner in a private equity fund? A General Partner is the managing entity of a private equity fund, responsible for day-to-day operations, strategy execution, and legal accountability. You make all investment and management decisions on behalf of the fund and carry unlimited liability for its obligations. The fund is typically structured as a limited partnership. You, as the GP, serve as the active manager, while LPs—often pension fu...