2. Owl Ventures has raised their $500M fund, Owl Ventures III, with terms as given in Appendix C of this chapter. The terms for carried interest and for the general partner claw back are Distributions Distributions in respect of any partnership investment will be made in the following order of priority (1) 100% to the limited partners until they have received an amount equal to their contributed capital: (ii) 75% to the limited partners and 25% to the general partners. General Partner Claw back Obligation Upon the liquidation of the fund, the general partner will be required to restore funds to the partnership to the extent that it has received cumulative distributions in excess of amounts otherwise distributable pursuant to the distribution formula set forth above, applied on an aggregate basis covering all partnership investments, but in no event more than the cumulative distributions received by the general partner solely in respect of its carried interest Solution: 3. Construct an example of fund performance where the claw back provision would be triggered. In this example, compute the carried interest paid in each year and show the total amount that must be paid back by the GPs on the liquidation of the firm Solution: 2. Owl Ventures has raised their $500M fund, Owl Ventures III, with terms as given in Appendix C of this chapter. The terms for carried interest and for the general partner claw back are Distributions Distributions in respect of any partnership investment will be made in the following order of priority (1) 100% to the limited partners until they have received an amount equal to their contributed capital: (ii) 75% to the limited partners and 25% to the general partners. General Partner Claw back Obligation Upon the liquidation of the fund, the general partner will be required to restore funds to the partnership to the extent that it has received cumulative distributions in excess of amounts otherwise distributable pursuant to the distribution formula set forth above, applied on an aggregate basis covering all partnership investments, but in no event more than the cumulative distributions received by the general partner solely in respect of its carried interest Solution: 3. Construct an example of fund performance where the claw back provision would be triggered. In this example, compute the carried interest paid in each year and show the total amount that must be paid back by the GPs on the liquidation of the firm Solution