Private Equity
GP
General Partner. The private equity firm itself, the entity that raises and manages the fund and makes investment decisions.
Definition
GPs source deals, deploy capital, oversee portfolio company operations, and ultimately exit investments. They earn a 2% management fee on committed capital plus 20% carried interest on profits above a hurdle rate.
Why it matters
The GP is the buyer for portfolio-wide AI programs. Selling once at the GP level creates work across every PortCo in the fund.
Where Sophizo applies this
Sophizo deploys GP inside revenue and AI engagements with growth-stage operators and PE-backed portfolios.
See Private Equity →Related terms in Private Equity
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization. The core profitability metric private equity uses to value companies.
IRR
Internal Rate of Return. The annualized return a PE fund generates on the capital it puts to work.
TVPI
Total Value to Paid-In. The total value a fund has created, realized plus unrealized, divided by the capital LPs have contributed.
DPI
Distributions to Paid-In. Cash actually returned to limited partners, divided by the capital they contributed.
From vocabulary to outcomes
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