Private Markets
Clawback
Definition
What is Clawback?
A provision requiring a manager to return excess carried interestA share of fund profits allocated to the manager after contractual conditions are met. if later losses make earlier payments too large.
Example in practice
How This Looks in Practice
The GP repays carry after a failed late investmentAn asset or commitment of money made with the expectation of future income, growth, or both. reduces total fund profit.
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