Private Markets

Limited Partner

Definition

What is Limited Partner?

An investor that commits capital to a private fund while generally not managing it.

Example in practice

A pension fund invests as an LP in a private-equity fund.

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Investment in privately held companies, often with active ownership and a multi-year exit plan.

Equity financing for young, high-growth companies with substantial uncertainty.

An individual who invests personal money in early-stage companies.

A preliminary document outlining the main commercial terms of a proposed investment.

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