📊 Fund Structure & Governance Explained: LPs, GP & Carried Interest Demystified 💼✨ Investing in private equity, venture capital, or hedge funds? Understanding fund structure and governance is key to navigating this complex world with confidence. The terms Limited Partners (LPs), General Partners (GPs), and Carried Interest often come up, but what do they really mean? 🤔 Let’s break down these crucial components so you know who does what, who makes the decisions, and how profits are shared. What is a Fund? 🏦 A fund pools money from investors to invest in a portfolio of assets, such as startups, real estate, or other ventures. The fund is usually structured as a limited partnership (LP), combining capital from investors with the expertise of fund managers. Limited Partners (LPs) 👥💸 LPs are the investors — individuals, institutions, pension funds, or family offices — who contribute capital to the fund but have limited liability. Key Features of LPs: Limited ...
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