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Dictionary by pitch.dog
Exits, liquidity & investor returns · Specialist

Clawback

Also called: GP clawback

ELI5

Money may have to be returned if earlier profit sharing was too high.

Used in conversation

“The clawback is calculated at the end of the fund.”

Definition

A mechanism requiring repayment of excess carried interest or other amounts when later results change the final entitlement.

Here “Clawback” means: A mechanism requiring repayment of excess carried interest or other amounts when later results change the final entitlement.

Pitch context

You will see “Clawback” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • ClawbackThe same visible label “Clawback” names different concepts.
  • ClawbackThe same visible label “Clawback” names different concepts.
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Sources & evidence · 6

Direct term-level sources and supporting source families.