We can simply understand this as a funder. Many times, a project requires an investment of tens of millions or even hundreds of millions of dollars. (Most investment companies have many different projects under their umbrella.) The GPs of investment companies do not have so much money or they do not want to invest so much of the company's money in one project in order to share the risk. And there are always people in the world who have lots and lots of cash, but no good investment methods. And put in the bank to eat interest in the financial world is a pure loss of money behavior. So, the LP was born, and after a series of procedures, the LP will give their money to the GP to take care of, and the GPs will take the LP's money to invest in the project, from which the profit, and then the two sides to share the profit. This is the classic "you (LP) pay, I (GP) contribute" situation in real life.