What is a real estate general partner?

A real estate general partner (GP) is the managing entity in a real estate partnership or fund responsible for sourcing deals, making investment decisions, overseeing asset management, and ultimately delivering returns to investors.

Roles and Responsibilities of a GP

• Identifying and sourcing investment opportunities
• Conducting due diligence (legal, financial, technical)
• Raising capital from limited partner investors
• Managing the property through its hold period
• Executing the value-add or development strategy
• Arranging financing and managing lender relationships
• Overseeing exit — sale, refinancing, or REIT listing

How GPs Are Compensated

• Management fee: 1.5%–2% of assets under management annually
• Acquisition/disposition fees: 0.5%–1% of transaction value
• Promoted interest / carried interest: 15%–25% of profits above the preferred return
• Asset management fee: Charged during the hold period

The general partner is the engine of any real estate fund or partnership identifying opportunities, executing strategies, and delivering returns. Investors should rigorously evaluate a GP's track record, team quality, alignment of interest, and governance before committing capital.