Limited Partnership Agreement (LPA)

A limited partnership is a form of partnership similar to a general partnership, however, in addition to one or more general partners, there are one or more limited partners. It is a partnership in which only one partner is required to be a general partner.

LPs have limited liability—they are only liable on debts incurred by the firm to the extent of their registered investment and have restricted management authority. The GPs pay the LPs a return on their investment, the nature and extent of which is usually defined in the partnership agreement.