Private Equity

LP

Limited Partner. The institutions providing the capital that PE firms invest, pension funds, endowments, sovereign wealth funds, and family offices.

Definition

LPs commit capital to a fund for its full life, typically 10 years, and receive distributions as exits occur. They have no operational control but vote on extensions and major fund-level decisions. LPs increasingly require evidence of AI governance and AI risk management at the portfolio level.

Why it matters

The AI governance artifacts your portfolio cannot produce in writing today are the same artifacts your LPs will ask for at the next annual meeting.

Where Sophizo applies this

Sophizo deploys LP inside revenue and AI engagements with growth-stage operators and PE-backed portfolios.

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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.
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