Venture capital assignment | Business & Finance homework help
Limited partners may countenance their GPs putting more money into a struggling company for several reasons. First, they might believe that the additional investment could help the company improve its operations and ultimately generate greater returns in the future. Additionally, it could be seen as an act of goodwill to reassure limited partners that their investments are being taken seriously and that the GP is invested in making sure the fund realizes long-term success. Finally, increased investment from GPs can also provide much-needed liquidity to help cover expenses related to day-to-day business activities or restructuring initiatives if needed.