General Partner (GP)

A General Partner (GP) is the active manager of a private equity fund structured as a Limited Partnership. Unlike Limited Partners (passive investors), the GP is responsible for all active fund management: deal sourcing and selection, portfolio company governance, exit management and LP reporting. The GP is compensated through management fees (1.5–2.0% of committed capital) and carried interest (20% of profits above the hurdle rate) — creating strong performance alignment. Unlike LPs whose liability is capped at committed capital, the GP bears unlimited personal liability.

‍

Example: the GP of a CHF 200.0 million Swiss buyout fund receives CHF 3.6 million annual management fees (1.8%) and targets 20% carried interest on net profits above the 8% hurdle rate. On a portfolio realising CHF 80.0 million net profits, the GP earns CHF 16.0 million carried interest — a 4.4x multiple on management fees, creating powerful alignment between the GP's economic interest and LP returns.

‍

Hectelion supports GPs in acquisition valuation, due diligence and carried interest waterfall structuring.