Private Markets
Limited Partner
Definition
What is Limited Partner?
An investorA person or organisation that commits capital with the expectation of a financial return. that commits capital to a private fund while generally not managing it.
Example in practice
How This Looks in Practice
A pension fundA pool of retirement assets invested on behalf of members or beneficiaries. invests as an LP in a private-equity fund.
Keep learning
Related Terms
Private Markets
Private Equity
Investment in privately held companies, often with active ownership and a multi-year exit plan.
Private MarketsVenture Capital
Equity financing for young, high-growth companies with substantial uncertainty.
Private MarketsAngel Investor
An individual who invests personal money in early-stage companies.
Startup InvestingTerm Sheet
A preliminary document outlining the main commercial terms of a proposed investment.