Definition

Noun: A sleeping partner is a person who invests money in a business but does not take an active role in its management or day-to-day operations. Their involvement is typically not publicly known.

Usage

This term is used primarily in British English to describe a silent investor in a partnership or business venture. The partner provides capital (money) but does not participate in running the business.

Examples

• The company was founded by two active managers and a sleeping partner who provided the initial funding.
• As a sleeping partner, her financial stake was significant, but she had no say in the operational decisions.

Advanced Usage

• The concept relies on the distinction between providing capital and providing labor or management. The sleeping partner's return is usually a share of the profits.
• Legally, a sleeping partner may still have liability depending on the structure of the partnership agreement, even if they are not publicly known as a partner.

Variants and Related Words

• Silent Partner (Noun): This is the more common term in American English and is a direct synonym for "sleeping partner."
• Dormant Partner (Noun): Another less common synonym with the same meaning.

Synonyms

• Silent partner
• Dormant partner
• Limited partner (in some contexts, though this has a specific legal definition)

Antonyms

• Active partner
• Managing partner
• General partner

Noun

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