LP Investor

In this term, “LP” stands for “limited partner”. As you might guess, LP investors in equity investments assume both a limited share of risk and, consequently, a limited share of potential profits as compared with the GP investor(s) (GP investor is typically synonymous with “the Sponsor” or the “managing partner”). LP investors are not liable for debt, and are exempt from much of the legal risk inherent in the real estate project, the GP investor is typically entitled to a proportionally greater share of profits. EQUITYMULTIPLE (and its constituent individual investors) typically assume the role of LP investor when entering equity investments.

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