Talk:Limited partnership/Archives/2015

Sleepy partnerz
I want to know what is the role of a sleeping partner and how the money input from a sleeping partner is handled?

Agreed with merger!
Agreed with merger. --Aking 05:29, 10 February 2006 (UTC)
 * It's pretty clear-cut; I added the tags as a formality and because I'm too lazy to do it myself. Melchoir 05:57, 10 February 2006 (UTC)
 * Yeah, nom. --Aking 06:12, 10 February 2006 (UTC)


 * Thank you for pointing out the duplication. I have converted the plural to a redirect. David91 06:35, 10 February 2006 (UTC)

US Limited partnerships
Apropos of "In the United States, the LP organization is most common among law firms, accounting firms, film production companies, finance firms ...": I have been in the law business, including practice at several US law firms, since the late 1970s, and I've never heard of a law firm organized as a limited partnership (LP). Previously they were general partnerships, and as state law changed many morphed into limited liability partnerships (LLPs). An LLP is fundamentally different from an LP, among other things in that there isn't any statutory restriction on the ability of a member to participate in control of the entity. In addition, the actions of one member of an LLP do not necessarily create liability for other members. Examples of law firms that are LLPs include Skadden Arps, Baker & McKenzie and Latham & Watkins, as may be verified by checking their websites (check Baker's Privacy Policy page, since this information is not on their home page). I expect that accounting firms are similar, e.g. Grant Thornton LLP, though some of the largest are organized as non-US entities. This page needs evidence that LPs are used for US law and accounting firms, or else those categories should be deleted from this sentence.

In the same sentence, the meaning of "finance firm" is unclear. Many finance firms in the US are corporations (e.g. Goldman Sachs) or limited liability companies (LLCs), the latter being quite typical as general partners of investment funds organized as LPs. If the phrase "finance firm" is changed into "investment fund," the sentence would be more accurate. See, e.g., Matthew Hudson, "Funds: Private Equity, Hedge and All Core Structures (Wiley Finance 2014), esp. Chapter 2.

Apropos of "Private equity companies almost exclusively use a combination of general and limited partners for their investment funds": This statement is unclear. How does such a "combination" differ from a limited partnership? Also, what is a "private equity company"? Does this refer to the management company who acts as a general partner in the LP, or something else? Proposed alternative "Venture capital and other private equity investment funds are almost exclusively organized as limited partnerships," though a softer adverb, such as "typically" could be used in place of "almost exclusively." See Hudson (2014) at 9. Ajsutter gaiben (talk) 02:52, 20 May 2014 (UTC)

Yes, in the United States, a law firm or an accounting firm cannot generally be a "limited partnership." They author may have been thinking of "limited liability partnership," which (in Texas for example) can be a form of general partnership. A "limited liability partnership" and a "limited partnership" are not the same. I corrected the article. Famspear (talk) 16:34, 18 July 2015 (UTC)

I also tried to clean up the article, which confusingly used the abbreviation "LP" to mean "limited partner", but later used the same abbreviation to mean "limited partnership." That is two different things. To avoid confusion, it's better just not to use the abbreviation at all. Famspear (talk) 16:38, 18 July 2015 (UTC)