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Limited partnership agreements (LPAs) are contracts between limited partners (LPs) and general partners (GPs). LPs, who can be institutions like pensions and endowments, as well as high-net-worth individuals, invest in private equity funds managed by GPs, which are private equity firms. The LPA outlines the structure of their relationship and the fund's operations. Once the fund invests in a business, that entity becomes a portfolio company. The LPs enjoy limited liability, meaning their financial risk is restricted to their investment in the fund, while they do not involve themselves in day-to-day management of the private equity firm.