What type of partner in a private equity structure generally makes operational decisions?

In a private equity structure, the partner responsible for making operational decisions is the general partner. General partners are typically the ones who manage the day-to-day operations of the fund, make investment decisions, and oversee the portfolio companies. Their role involves formulating strategies, conducting due diligence, and executing investment transactions.

In contrast, limited partners contribute capital to the fund but do not take part in the management or operational decision-making processes. They are often institutional investors or high-net-worth individuals looking for investment exposure without taking on the responsibilities of running the fund. Silent partners, also known as limited partners in this context, generally do not participate in management either. An investment advisor may provide recommendations and advice but does not have the authority to make operational decisions within the private equity firm. Therefore, the general partner is the key player in operational matters within a private equity structure.