Clawback conversations: A look at GP attitudes and preferences in waterfall structures and clawback risk
Clawback conversations: A look at GP attitudes and preferences in waterfall structures and clawback risk
A persistently muted deal landscape, resulting from skyrocketing debt costs and widespread macro-economic uncertainty, have steadily upped the pressure on private equity GPs over the past two years. Among the sources of pressure is the risk of clawbacks – LP claims on GPs’ carried interest in the event of losses.