What is one of the primary functions of private equity general partners?

One of the primary functions of private equity general partners is to make all investment decisions and manage the fund. General partners (GPs) are responsible for identifying, evaluating, and executing investment opportunities on behalf of the fund. This includes conducting due diligence on potential investments, negotiating terms, and ultimately deciding which companies or assets to acquire. Additionally, GPs have a role in managing the portfolio of investments, which involves monitoring performance, implementing strategic initiatives, and preparing for exits, whether through sales or public offerings.

While general partners do engage with investors and keep them informed, their primary responsibility lies in the active management of the fund and its investments, which is why the function of making investment decisions is central to their role. This differentiates them from limited partners, who typically provide capital but do not have a say in day-to-day management or investment decisions.