LPs can add value without managing: sharing local market knowledge when asked, making introductions to brokers, lenders or service providers (the GP decides), or patronizing businesses at fund properties. Avoid negotiating on the fund’s behalf or directing staff.
Referring other investors: securities laws restrict who may be paid for bringing in investors. LPs generally should not receive compensation for referrals, and any introduction should simply point the person to the fund’s official process. Ask the GP and your attorney before referring anyone.
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More on this stage: Deep Dive: Votes, Consents and Amendments · Deep Dive: Estate Planning for LP Interests