Definition
Limited Partner (LP)
An investor in the SPV whose liability is limited to their committed capital.
A limited partner (LP) is an investor in the SPV whose financial exposure and legal liability are capped at the amount of capital they have committed. LPs receive a proportional share of any returns from the SPV's investment but have no management role in the SPV. In a Delaware LLC SPV, LPs are technically 'members' rather than 'limited partners', but the term LP is used universally across the industry.