GP Commitment

Private Equity Glossary

Capital contributed by the GP alongside LPs as an alignment mechanism. Typical institutional standard is 2–3% of fund size, ranging from 1% (mega-funds, where 1% is already a substantial dollar amount) to 5%+ (emerging managers, where LPs demand stronger alignment). The source of GP commit matters for alignment quality: cash committed from partner personal net worth creates stronger alignment than commit deferred from future carry or funded via management-company loans.

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