limited partner
Passive business investor
A limited partner is an investor in a partnership who contributes capital but has no role in management and whose liability is restricted to the amount invested.
Unlike general partners, who run the business and bear full personal liability, limited partners are passive—they share in profits but can't bind the partnership or be sued for its debts: She came in as a limited partner, putting up two million but staying out of operations.
- risk exposurePotential for financial loss
- liability shieldSafeguard from being sued
- skin in the gamePersonal risk in outcome
- tax shelterLegal income-shielding arrangement
- voting rightsEntitlement to elect officials
joint venture · fiduciary duty · capital gains · liability insurance · private equity · venture capital · hedge fund · contract law · debt financing · passive income · contingency planning · exit strategy · sole proprietorship · economic dependency
- partnersassociates, collaborators, colleagues, co-workers, coworkers
- supportersfan, patron, supporters, backers, backer
- business ownershipowner, sole proprietor, sole proprietorship, co-owner, proprietor
- partnershipsalliance, joint venture, joint ventures, cooperation, co-founder
- Hedge Fundsoffshore fund, management fee, high water mark, hurdle rate, NAV
- private equityleveraged buyout, leveraged buyouts, LBO, buyouts, dry powder
limited partnergeneral partner
Fully liable business co-owner
managing partner · working partner · senior partner · sole proprietor · guarantor
limited partnergeneral partner
Fully liable business co-owner
operator · fund manager · managing director · principal · silent partner
limited, partner, limit, limits, limiting, unlimited, limitation, limitations, limiter