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Clawback conversations: A look at GP attitudes and preferences in waterfall structures and clawback risk

September 17, 2024 at 11:05 am

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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. This report dives deeper into how these risks are playing out under current market conditions, and what firms are doing to adapt.