POSTS TAGGED : private equity

Bassem Mansour: Understanding the Role of Limited Partners in Private Equity

LPs in private equity

Key Takeaways

  • Limited partners supply the essential capital that enables private equity funds to pursue long-term investment strategies.
  • LPs include institutional investors such as pension funds, endowments, family offices, and high-net-worth individuals.
  • LP oversight ensures transparency, ethical fund management, and strong accountability from general partners.
  • Many LPs promote ESG standards, influencing how private equity firms approach sustainability, risk, and long-term value.
  • LP participation builds confidence in private equity markets by reinforcing discipline, governance, and strategic alignment.
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Two Key Partners in Private Equity Funds – Insights from Zac Barnett

Meeting with a private equity firm

Key Takeaways

  • Private equity funds are typically structured as limited partnerships (LPs), consisting of general partners (GPs) and limited partners (LPs).
  • General partners manage fund operations, make investment decisions, and earn through management fees and carried interest.
  • Limited partners provide the bulk of capital, enjoy limited liability, and may serve on advisory committees without managing day-to-day operations.
  • LPs include sovereign wealth funds, pensions, endowments, and high-net-worth individuals, often pushing for transparency and responsible investing.
  • Understanding the roles of GPs and LPs is crucial for grasping how private equity generates returns and manages risk.
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3 Key Considerations to Find the Right Private Equity Firm

Private equity firms are playing an increasingly important role in helping businesses to navigate and thrive in today’s rapidly evolving markets. Business owners evaluating a new deal or opportunity to work with an investor firm may find themselves having to choose between a fundless or a funded sponsor model.

Meeting with a private equity firm

photo credit: Edmond Dantès / Pexels

Both models have their pros and cons, so it’s important for business owners to closely evaluate their options before they sign a letter of intent. Here are a few considerations to help business owners learn more about the different advantages that potential sponsors have to offer and discover which private equity firm is ultimately right for them.…

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