In a syndicate or regular partnership, the owners other than the general partners. Liability is limited to the amount of their investment.

Usually investors in a limited partnership with no management activity or responsibility. The liability or risk is limited to the amount of invested capital with no personal assets at risk. A limited partner has limited liability.

Institutions or individuals who contribute capital to a private equity fund. Limited partners typically are pension funds, private foundations, and university endowments. However, private equity firms themselves may serve as limited partners in other firms’ funds, as, for example, when a large buyout firm channels money to a fund managed by a venture capital firm. See also General partner.