Management fee
The annual fee (often ~2%) LPs pay GPs to operate the fund and pay salaries.
The classic structure is '2 and 20' — 2% fee, 20% carry; on small funds, fees barely cover the lights.
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Carry
The share of a fund's profits the GPs keep — classically 20% — after returning capital to LPs.
Limited partner (LP)
The investors in a VC fund — super funds, family offices, endowments, wealthy individuals — whose money the GPs deploy.
General partner (GP)
The partners who run a VC fund — they source deals, make investment decisions and sit on boards.
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