Carry Clawback Collateralization

Carried interest is intended to align the interests of fund managers and investors. Depending on how it is structured, however, there is a risk that carried interest payments that have already been made may later have to be reclaimed. In an interview with David Peroz, the article in FONDS professionell explains the differences between the U.S. “deal-by-deal” model and the European “fund-as-a-whole” model, and highlights the role that clawback provisions and various collateral instruments play in this context.