hard · Private Equity pe-core

A fund with an American (deal-by-deal) waterfall realized a 50M profit on Deal 1 and paid 10M in carry to the GP. Deal 2 subsequently loses 30M.

At the end of the fund's life, what is the clawback obligation if no other deals were made and the preferred return is ignored?

  1. 10.0M
  2. 4.0M
  3. 30.0M
  4. 6.0M

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