LPA (Limited Partnership Agreement)
Private Credit glossary · Fund Structures, Returns & Economics
Definition
Master legal document governing the rights, obligations, and economics of a private fund between the GP and LPs.
LPA (Limited Partnership Agreement) in plain English
The LPA, or Limited Partnership Agreement, is the giant rulebook that a private fund and its investors all sign before any money moves. It spells out exactly who can do what, how profits get split, what fees the managers take, and what happens if things go wrong — so nobody argues about the rules later. Think of it like the detailed contract a band signs before a tour: it settles up front who gets paid how much, who books the venues, and how disputes are handled, so there are no nasty surprises mid-tour.
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