What are fund Structures in private equity

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Fund structures in private equity refer to the legal and organizational frameworks used to pool and manage capital for investment purposes.

Private equity funds are typically structured as limited partnerships or limited liability companies (LLCs).
Limited partners (LPs) are passive investors who contribute capital to the fund and have limited liability.
General partners (GPs) are responsible for managing the fund's investments and operations.
GPs typically contribute a smaller portion of the capital but have unlimited liability.
Funds may have multiple tiers or classes of LPs with different rights and obligations.
Some common fund structures include buyout funds, venture capital funds, and mezzanine funds.
Each fund structure has its own investment strategy, target industries, and risk-return profile.

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