hard · Private Equity & LBOs
In an American waterfall, Deal A is exited for a $50M profit and the GP receives $10M in carry. Deal B later fails, resulting in a $30M loss.
If these were the only two deals in a $100M fund, how much clawback is the GP technically obligated to return at fund wind-down?
- $6.00M
- $4.00M
- $2.00M
- $10.00M
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