This article focuses on the core issues of the governance structure of private equity funds in the United States. It systematically analyzes the imbalance of power, information asymmetry, opaque fee mechanism, and weakened LP (limited partner) governance caused by the GP (general partner)-dominated structure. After comprehensively reviewing the U.S. Uniform Limited Partnership Act (ULPA), SEC regulatory policies, and Institutional Limited Partners Association (“ILPA”) industry practice standards, the article starts with the structural imbalance between GP and LP and suggests a series of optimization measures including the rigidification of fiduciary obligations, transparency of contract terms, legal authorization of LPAC, and dispute prevention mechanisms. In today's highly progressive institutional environment of private equity fund contract freedom, it is important to rely on the power of legal norms and industry self-discipline to reallocate the rights between GP and LP. This article aims to pave the way for institutional construction of private equity fund governance reform and provide feasible solutions for international private equity market participants on how to strengthen internal governance.

Yuan Gao. Research on the Design of Governance Structure for Private Equity Funds and the balance of GP and LP Rights. International Journal of Business Management and Economics and Trade (2026), Vol. 7, Issue 1: 44-53. https://doi.org/10.38007/IJBMET.2026.070106.

[1] Batt R, Appelbaum E. Agency Problems in Private Equity[M]//The Palgrave Encyclopedia of Private Equity. Cham: Springer International Publishing, 2024: 1-7.

[2] Kaplanis A T. A Review on the Contractual Exit Strategies of Private Equity Funds. 2024.

[3] Borysoff M N, Mason P, Utke S. Understanding private equity funds: A guide to private equity research in accounting. Journal of Financial Reporting, 2024, 9(1): 21-49.

[4] Ljungqvist A. The Economics of Private Equity. A Critical Review. CFA Institute Research Foundation, 2024.

[5] Loyola Miro A. How Private Equity Funds create value through LBOs: a case study analysis of Golden Goose’s buyout by Permira[D]. Universitat Politècnica de Catalunya, 2024.

[6] Huijie Pan. Discussion on Low-Latency Computing Strategies in Real-Time Hardware Generation. International Journal of Neural Network (2025), Vol. 4, Issue 1: 48-56.

[7] Chuying Lu. Object Detection and Image Segmentation Algorithm Optimization in High-Resolution Remote Sensing Images. International Journal of Multimedia Computing (2025), Vol. 6, Issue 1: 144-151.

[8] Buqin Wang. Research on Load Balancing Technology in Distributed System Architecture. International Journal of Multimedia Computing (2025), Vol. 6, Issue 1: 152-159.

[9] Xia Hua. User Stickiness and Monetization Strategies in the Release of Global Game Projects. International Journal of Business Management and Economics and Trade (2025), Vol. 6, Issue 1: 188-195.

[10] Linwei Wu. The Application of Quantitative Methods in Project Management and Actual Effect Analysis. International Journal of Business Management and Economics and Trade (2025), Vol. 6, Issue 1: 204-212.

[11] Junchun Ding. Cross-Functional Team Collaboration and Project Management in the Automotive Industry. International Journal of Social Sciences and Economic Management (2025), Vol. 6, Issue 2: 162-170.

[12] Qifeng Hu. Optimization and Upgrade Path of Tax Management Software System Based on Cloud Platform. Socio-Economic Statistics Research (2025), Vol. 6, Issue 2: 194-200.

[13] Chen, X. (2025). Research on AI-Based Multilingual Natural Language Processing Technology and Intelligent Voice Interaction System. European Journal of AI, Computing & Informatics, 1(3), 47-53.

[14] Qi, Y. (2025). Data Consistency and Performance Scalability Design in High-Concurrency Payment Systems. European Journal of AI, Computing & Informatics, 1(3), 39-46.

[15] Liu, D., Shen, Q., & Liu, J. (2026). The Health-Wealth Gradient in Labor Markets: Integrating Health, Insurance, and Social Metrics to Predict Employment Density.