Global Definitions Database

With reference to a general partner or manager:  a mechanism whereby a manager is obligated to return a portion of its previously received promote or performance fee payment if as a result of timing and fund performance, the general partner receives more carry or performance fee during the life of the fund than the general partner would be entitled to receive had profits and losses been allocated on an aggregate basis at the time of dissolution of the fund; With reference to a limited partner:  the obligation of an investor to return previously received distributions to the fund if the fund requires such amounts to fulfill its indemnification obligations or satisfy expenses or other liabilities; Also known as “clawback provision”.