Limited Partnership - LP

A limited partnership is not the qualitative assessment of Moe, Larry and or Curly. Woop. Woop. And yes, woop.

Rather, a limited partnership is an investment company run by a general partner with clear lines of demarcation as it relates to risk, fiduciary duty, and management responsibilities.

When you think Limited Partnership, think: things like a Venture Capital partnership. Like one where you have half a dozen experts who come together with long track records of identifying early stage growth companies usually deep in technology….

Together, they are the general partners of the partnership. The generals. They are responsible for the day to day management of the firm and in theory, have unlimited personal liability should something go terribly wrong

The limited partners are their investors. The people who give them money to make more money. General partners raise money for their funds by getting Limited Partners to invest in them. So what is limited about it? Well, the liability to the investors.

As long as those investing in the limited liability partnership don't operate the firm or manage it or deal with day to day issues that come up. Then those limited partners are fully shielded from any liability should uh, something go terribly terribly wrong, although if you're a limited partner in a company that's designed a nuclear-powered blender that spins just a little too fast, we're not sure how much that'll be worth in the grand scheme.