medium · Private Equity

This obligation most likely arose because which scenario occurred?

1. The LP failed to meet a capital call, and the GP was required to cover the shortfall from their own carried interest account.
2. The fund's management fees exceeded the 2.0% annual cap defined in the fee provisions of the Limited Partnership Agreement governing the fund.
3. The GP received carry on early profitable deals, but subsequent deal losses lowered the total fund return below the preferred hurdle.
4. The GP failed to invest at least 80% of the committed capital before the expiration of the defined investment period set out in the LPA terms.

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