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by matthewmcg 2073 days ago
A partnership interest is an ownership stake in the firm which has significant value. Typically you buy in by paying this value.

The firm could just give it to you, but the value of the interest would then be taxable income to you that you would need to pay taxes on in cash.

As others note, buying in also makes you literally and figuratively “invested” in a way that is thought to promote better behavior.