medium · Private Equity pe-core
A GP partner receives $10M in carry distributions from an American waterfall. Later, a fund-level loss triggers a $4M clawback.
If the partner's effective tax rate was 25% and the LPA features a 'net-of-tax' clawback, how much must the partner personally return to the fund?
- $3M
- $7.5M
- $1M
- $4M
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