Commercial Real Estate (CRE) Investor Question #55: I am looking at a real estate syndicated / private placement / private equity deal. Who is a General Partner(GP) and who is a Limited Partner(LP)?
General Partner is typically the sponsor or operator responsible for finding the deal, setting up the deal, handling the transaction, securing the financing, managing the investment, and eventually selling it.
Limited Partners are passive investors and they contribute capital to the syndicate to earn a return on their investment. LPs benefit from having limited liability in the investment.
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