Understanding the LP / GP Relationship
Whether you're about to do your first deal or you're part of a bigger firm that's done hundreds, chances are you're using a combination of your own capital and outside investor equity to fund your deals. Certainly, there are plenty of funds that are investing captive equity (e.g. private equity), but most developers and real estate entrepreneurs are using a mixture of LP (limited partner) and GP (general partner) equity to fund their deals. What is an LP / GP? Private equity