Why Does a Private Equity Fund have a GP and a Management Company

The role of the management company in building on a private equity firm's success is frequently overlooked. But a management company with deep resources facilitates the raising of successor funds and can improve the performance of portfolio investments. Understanding how it works is critical whether you are choosing between firms as a potential employee or investor.
So, why does a private equity fund have both a general partner and a management company? This video and the associated post will explain the role of the general partner and the management company in the formation of a private equity fund (aka financial sponsor).
Link to Post: www.asimplemodel.com/insights...
Example of Creating Value at Scale: www.asimplemodel.com/insights...

[@paulb2022]

Nice your back mate.

[@ASimpleModel]

Thanks Paul!

[@sahasraeducationalacademy9238]

Hi Thank you for sharing your knowledge, Carried interest should go to Manager i.e management company then why for GP?

[@Mis-AdventureCH]

Another question...a Reg A 506(c) that manages a fund over a certain amount will need a "RIA" as per SEC rules, in particular a Series 65 license. Does that have to be a contracted, seperate entity, or can that "Management Company LLC" have that Series 65 person on staff and thusly register as the nescessary RIA?

[@sebastianpurcell1641]

The RIA (registered investment advisor) is the _firm_ that registers with the SEC and will hold the Series 65 licenses for the personnel on your team that are registered investment advisor representatives. So, you can't (simply) have a person on your team with a series 65. You need to register the firm with the SEC.

[@matthewrutters6842]

They seem to be one and the same. They're kept in different silos for risk purposes maybe?

[@lewguitarify]

would complete your approach if you can show this scheme in term of share? and financial flux betwwen all those entities