Core Viewpoint - The article discusses the implications of the Guangdong Provincial Finance Department's new regulations on management fees for government investment funds, highlighting the potential impact on market-oriented general partners (GPs) and the broader partnership dynamics between limited partners (LPs) and GPs [2][4][5]. Summary by Sections Government Investment Fund Regulations - The new management fee regulations primarily target government investment funds, which include local government guidance funds and strategic mother funds, rather than market-oriented sub-funds [2][3]. - Management fees can be charged but must be pre-allocated, meaning if the fund does not achieve a return of principal plus management fees upon liquidation, a refund may be required [2][3]. Market Practices and Fee Structures - Historical practices show that management fees for government investment funds can range from 0.5% to 2%, with some market-oriented GPs potentially facing similar fee structures [3][4]. - The article references various local government practices, indicating a trend towards lower management fees, with some regions setting fees as low as 1% [3][4]. Partnership Dynamics and Responsibilities - The article emphasizes the importance of the partnership spirit in limited partnership structures, where GPs bear unlimited liability while LPs have limited liability and do not participate in management [8][9]. - It argues that the current trend of LPs demanding lower management fees and greater control undermines the foundational principles of partnership, leading to a lack of mutual respect and cooperation [7][9]. Market Perception and Trust Issues - There is a growing concern regarding the perception of GPs in the market, with LPs increasingly skeptical of GPs' reputations and capabilities [10][12]. - The article suggests that many investors fail to understand the distinction between "making the cake" (investing) and "dividing the cake" (distributing profits), which complicates the investment landscape [12]. Conclusion on Partnership Culture - The article concludes that both LPs and GPs need to reassess their roles and responsibilities within the partnership framework to foster a healthier investment environment [10][11].