Assumptions Deal-by-deal compensation The fund sells investments for $70 (cost basis $45 for each) No hurdle rate No GP catch-up 80/20 carried interest split Clawback provision in the event of an under-performance Strict Deal-by-deal Limited Partners Investment A Investment B General Partner Original contributions (Year 1) Sale of investment A for $70 (Year 2) Return of capital 80/20% split of residual amount Total write-off investment B (Year 3) Return of capital 10 0 80/20% split of residual amount Sub-total Clawback Loss on capital Assumptions Deal-by-deal compensation The fund sells investments for $70 (cost basis $45 for each) No hurdle rate No GP catch-up 80/20 carried interest split Clawback provision in the event of an under-performance Strict Deal-by-deal Limited Partners Investment A Investment B General Partner Original contributions (Year 1) Sale of investment A for $70 (Year 2) Return of capital 80/20% split of residual amount Total write-off investment B (Year 3) Return of capital 10 0 80/20% split of residual amount Sub-total Clawback Loss on capital