Similar to a general partnership, which has one or more general partners (GPs), a limited partnership has one or more limited partners (LPs). however, only one partner is required to be a general partner.
The LPA addresses: the Term of the partnership, Management fees, Hurdle rate or preferred return, Carried interest, and Restrictions on the General Partner.
This Agreement, abbreviated in the trade as the LPA, is a Delaware limited partnership agreement which constitutes the venture capital fund. The investors as limited partners and the general partner is a limited liability company which shares in the carried interest and manages the acquisitions of portfolio companies and the exits or liquidity event ... sale of the company (“trade sale”) or initial public offerings (“IPOs”).