The GP commitment is the money a manager and its partners invest in their own fund, often a few percent of the total.
What the film says
In private equity, the manager usually invests its own money too. That's the GP commitment. Say a one billion dollar fund has a two percent commitment. That's twenty million of the partners' own money. So why do investors care? They read it as skin in the game. A low one, or an all-borrowed one, can raise questions.
In the glossary: GP commitment
A simple example with round numbers, not advice. Terms vary by fund.
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