An arrangement in which either the investors or the manager in a vehicle agree to use their prior dividends or performance fees received, in the case of investors, to cover any subsequent cash deficiencies for performance fees and, in the case of the manager, to cover poor performance over the entire life of the vehicle.
Global Definitions Database
Claw back
Source: INREV | Date: 15 March 2017 | ID: D0108 | Version: 5
Parent term
Performance fee
Also known as incentive fees, promote or carried interest, are fees charged by investment advisors, or managers, after a predetermined investment p...
Related
Carried interest
A re-allocation of profits from the investor's capital account to the investment manager capital account based on the ability of the latter par...
Waterfall calculation
When returns are paid to more than one party in a vehicle, the order of priority for cash flows of these is set out in the waterfall calculation.