What do you think of this GP/LP structure?

Was at lunch with an investor today. Asked him about his usual Limited Partnership structure (in which he's always the GP) and this is what he said:

Equity 100% LP/0% GP
Pref to LPs - all cash flows until return of capital achieved
Following LP return of capital, all FCF split 25% to GP, 75% split amongst LPs
GP takes personal liability (no incorporation/nominee)
GP takes no fees (AM, etc.)

Thoughts?

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Feb 8, 2019
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