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NO.
It comes down to receiving half the performance while bearing all the risk. Indeed if equity drops 50%, risk of default by the general partner is far from negligible.
Sorry, but It wouldn't fly with me...
Best regards
Gwenn
John Cappello a écrit:
> This is not a solicitation but a simple question to a knowledgeable group.
>
> If there were a General Partner who was putting up 50% of a commodity trading partnership on the basis that the Limited Partners would receive 25% of the profit on their 50% investment but guaranteed to receive all their money back if the equity ever declined 50% to where the Limited Partner equity was in jeopardy,would this be considered a fair trading deal.
>
> Simple Yes or no would do unless you care to make constructive comments.Once again no offer is being made or intended and this is strictly for Research.
>
> Regards,
>
> John
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