What are general partners (GPs) responsible for in private equity?

General partners (GPs) in private equity play a crucial role in managing the investment process. They are primarily responsible for making investment decisions, which involves identifying, evaluating, and ultimately deciding which companies or assets to invest in on behalf of the fund. This process requires extensive market knowledge and due diligence to ensure that the investments align with the fund's strategy and objectives.

Making investment decisions encompasses a range of responsibilities, including sourcing deal opportunities, negotiating terms, and conducting thorough financial analysis and research on potential investments. GPs utilize their expertise to determine the best strategies for generating returns for limited partners (LPs), who are the investors in the fund.

While tasks such as fixing accounting discrepancies, monitoring market news, and training junior staff are important functions within the broader private equity environment, they are not the primary responsibilities of GPs. Instead, GPs focus predominantly on high-level strategic decisions that directly impact the fund's investment portfolio.