In a private equity structure, who is responsible for raising the capital?

In a private equity structure, the general partner plays a critical role in raising capital. The general partner (GP) is responsible for managing the fund and making investment decisions, which includes actively seeking out and securing capital commitments from limited partners (LPs). The GP often has a network of contacts and resources that they leverage to attract investments, and they present the fund's investment strategy and potential returns to prospective investors to secure commitments.

Limited partners, on the other hand, are typically institutional investors, high-net-worth individuals, or entities that provide the capital but do not take on active management roles or have a say in daily fund operations. Their primary responsibility is to provide the investment capital as dictated by the partnership agreement.

The investment committee's role is distinct from capital raising; they usually focus on evaluating potential investments and monitoring the portfolio, rather than securing funding. Thus, the general partner is solely responsible for raising the capital needed to pursue the investment objectives of the fund.