Definition
General Partner (GP)
The sponsor managing the SPV, with full control and unlimited liability for management decisions.
In an SPV context, the general partner (GP) — or in an LLC, the managing member — is the sponsor responsible for selecting the investment, signing on behalf of the SPV, communicating with LPs, and authorizing distributions. The GP receives carried interest as performance compensation and bears management responsibility. In most modern Delaware SPVs the GP is itself a separate LLC, which limits the personal liability of the individual sponsor.