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No, in 99% of the deals I have worked on the GP is responsible for the debt. Right now we won't even look at deals where they want us as LP's to sign for the debt. LP's like their risk to be limited to the equity they are investing into the deal.
same experience as picklemonkey above
From the lending side- can confirm what picklemonkey said.
absolutely not--as LP's, we are making the deal possible and would not take on further risk by providing any guarantees
Hell no. Guarantees are part of what earns a GP their promote and helps balance the risk/reward spectrum.
All the responses so far are spot on, as you could no doubt tell from the consensus. The only caveat is that most venture docs should permit the LP to step in and replace the GP due to mismanagement/fraud/etc., and to do so, the LP would need to negotiate that ability to take over the sponsor guarantees on the debt. Certainly no institutional LP is providing a guaranty going into a deal.
All the above could potentially be thrown out the window if you've got a rich uncle or some other HNW investor who trusts you, by the way.
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