Understanding of the PE Fund Limited Partnership

Private Equity Firm as a general partner (GP), the fund as a whole as a limited partnership to exist. The fund mainly from the limited partner (LP) located in raising funds, and by the general partner to make all investment decisions. In the form of limited partnership fund, general partners have unlimited liability and limited partners share interest in the partnership, limited liability, at the same time, enjoy the right to know, right to consultation, but limited partners do not participate in the company management.

The relevant provisions of the law of the Limited Partnership Private Equity

With the development of private equity, partnership form especially limited partnership private equity has gradually become the mainstream form. It is through the organic unification of conditions to invest capital and the condition to trust people together, makes the separation based on heavy and realize the unity of a certain degree of fund ownership and right of management, is in line with the ancient wisdom of "moral" in the "reversal is the movement of the Tao" of the law. In 2006 August, the NPC Standing Committee for revision of the "partnership enterprise law" provisions of the third chapter "limited partnership", its purpose is to encourage the development of private equity. In the "legislative explanation", legislators pointed out that limited partnership "this form of organization is mainly suitable for risk investment, by having a good investment consciousness specialized management institutions or individuals as general partners shall bear unlimited joint and several liability, the exercise of right of execution of partnership affairs, responsible for the management of the enterprise; capital investment limited partners as the basis of partnership enjoy the interest in the partnership agreement, limited liability for the debts of the enterprise, not foreign representative partnership, is not directly involved in the operation and management of enterprises." The establishment of the limited partnership system greatly facilitates the development of private equity. The following from the relevant specification partner conditions, investment way analysis partnership private equity, the company made of private equity investment and the provisions of existing laws and regulations have no obvious difference, do not repeat here.