Updated about 7 years ago on . Most recent reply
How often do LPs guarantee the loan in a JV?
I’ve read that sometimes LPs are the ones to guarantee or split the guarantee at least 50/50 with GP.
How often does that actually happen? I’d think LP would be very reluctant to do so, and want larger share of profits for doing so.
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The role of the KP (Key Principal) is what you may be referring to. The whole point of being an LP is to be PASSIVE and not have to worry about anything and have limited liability.