In Finance, What Is a Silent Partner?
A silent partner is a business partner who does not have public involvement with the company with which he is involved. Typically, a silent partner also does not have anything to do with the day-to-day control of the business. He may also be referred to as simply an investor or as a shareholder. These types of partners generally own a part of the business. This means they are entitled to a share of the profits the business makes. The percentage of profits a silent partner is entitled to depends on the terms of the partnership agreement. There are several reasons why a person may want to be a silent partner. He may want to invest capital in a new business to earn the benefits of the growth of that business, but he may not want to actually run a company. There are numerous other benefits to being a silent investor that may also make this form of business ownership attractive to some.
