Master Limited Partnership (MLP)

Alternative Investments Financial Terms Dictionary

Contents

A general limited partnership (MLP) is a company organized as a public partnership.

MLPs combine the tax advantages of a private partnership with the liquidity of shares.
MLPs have two types of partners: general partners, who manage and oversee MLP’s operations, and limited partners, who are MLP’s investors.
Investors receive tax-protected payments from MLP.
MLPs are considered long-term, low-risk investments that provide a slow but steady income stream.