Why Does a Private Equity Fund have a GP and a Management Company

The role of the management company in building on a private equity firm's success is frequently overlooked. But a management company with deep resources facilitates the raising of successor funds and can improve the performance of portfolio investments. Understanding how it works is critical whether you are choosing between firms as a potential employee or investor.  So, why does a private equity fund have both a general partner and a management company? This video and the associated post will explain the role of the general partner and the management company in the formation of a private equity fund (aka financial sponsor). Link to Post: https://www.asimplemodel.com/insights... Example of Creating Value at Scale: https://www.asimplemodel.com/insights...