Definition

Noun: A silent partner is an investor in a business who contributes capital but does not take an active role in the day-to-day management or operations. Their involvement and financial stake are typically not publicly known or advertised.

Usage

A silent partner provides funding and shares in the profits or losses of the business but remains uninvolved in its daily running. This term is common in partnerships and some private companies.

Examples

• Noun:
  • The café was able to expand because of the investment from a silent partner.
  • As a silent partner, her only responsibility was to provide the initial capital.

Advanced Usage

• Legal and Financial Context: In legal agreements, a silent partner's liability is often limited to their investment, similar to a limited partner in a limited partnership. Their name may not appear on official business documents available to the public.

Variants and Related Words

• Sleeping partner (noun): A chiefly British English synonym for "silent partner."
• Limited partner (noun): In a formal limited partnership, this is the partner with limited liability who does not manage the business, closely analogous to a silent partner.

Synonyms

• Dormant partner: Another term for a partner who is not active in the business.
• Investor: A general term for someone who allocates capital with the expectation of a future financial return.

Related Phrases

• Behind-the-scenes investor: A descriptive phrase emphasizing the non-public, non-managerial role.
• Financial backer: A term highlighting the primary role of providing funds.

Noun

1. a partner (who usually provides capital) whose association with the enterprise is not public knowledge