Private Equity

Question 1 of 6

Participants in the ‘private equity' sector include both LPs and GPs.

Which of the following describes these participants correctly?

	LP means ‘limited participant' and GP means ‘gross participant' – the former having limited access to gains but some protection against losses
	LP means ‘limited participant' – a reduced fee level gives access to investments which have already shown some growth. The LP investment is therefore lower risk and lower return. GP means ‘general participant' – a higher fee level covers the extra
	LP means ‘limited partner' – a fee-paying investor in a private equity fund; GP means ‘general partner' – a fee-receiving manager of the private equity fund.
	LP means ‘limited partner' – a fee-paying investor in a private equity fund; GP means ‘gross partner' – typically an offshore investor who receives any gains free of UK tax.