AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Risks and Rewards of Owning a GP Stake
Owning a GP stake brings the advantage of contractual fees, providing a predictable revenue stream and potential for significant upside. However, the risk lies in the inability to raise new funds, which could lead to going out of business. Despite this, the contractual management fees offer a level of protection, ensuring a return of 80% of the investment even if the business fails.