Here is my understanding:
The GP of a project is the group like Bozzuto that will maybe put up 2% co-invest but otherwise will source and bid on a deal and then seek financing through capital markets that makes up the other 98% of their equity. They execute the deal and all the LP provides is the cash. They get deals from brokers and screen them and decide if they want to put up equity. The GP's get a fat promote and the LPs get their preferred return and then some if all goes well.
Follow Up Questions:
Are Financial Sponsors the LPs? Because they are the ones sponsoring the deal in the financial sense?