Talltree Ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appendix 2.B

Question:

Talltree Ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appendix 2.B of this chapter. Construct an example of fund performance where the clawback 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 upon the liquidation of the fund.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....