sleeping partner

Meaning

A sleeping partner is a person who provides capital to a business but does not take an active role in its daily management or decision-making. They share in the profits and losses of the company but remain largely invisible to the public. This arrangement is highly common for investors who trust the active founders to run the operation.

Examples

• He acts as a sleeping partner, providing the initial funding while his sister runs the bakery.

  He acts as a sleeping partner, providing the initial funding while his sister runs the bakery.

• We are looking for a sleeping partner who can inject some cash without wanting to change our business model.

  We are looking for a sleeping partner who can inject some cash without wanting to change our business model.

• As a sleeping partner, she only attends the annual general meetings and stays out of daily operations.

  As a sleeping partner, she only attends the annual general meetings and stays out of daily operations.

• They managed to expand their tech startup thanks to a wealthy sleeping partner.

  They managed to expand their tech startup thanks to a wealthy sleeping partner.

• Although he is a sleeping partner, his name is still legally tied to the company's liabilities.

  Although he is a sleeping partner, his name is still legally tied to the company's liabilities.

Common Mistakes

• ✗ He is a sleepy partner in our new tech startup.

  ✓ He is a sleeping partner in our new tech startup.

  The word 'sleepy' means tired or drowsy. In business, the correct idiomatic term is 'sleeping partner' (or 'silent partner').

• ✗ She wants to be a sleeping partner and manage the marketing team.

  ✓ She wants to be an active partner and manage the marketing team.

  A sleeping partner cannot manage teams or run daily operations. By definition, a sleeping partner provides money but remains inactive in daily business affairs.

Related Expressions

Practice

• Since she doesn't have time to run the business, she joined as a ___.

  💡 A partner who provides money but doesn't manage daily tasks.

  Show answer

  sleeping partner

• The company was funded by a ___ who prefers to remain anonymous.

  💡 An inactive business investor.

  Show answer

  sleeping partner