With respect to a Cornerstone LPA 2.0 agreement; under what conditions would partners in a venture capital fund give back up to 20% of distributions to satisfy [fund] obligations?
Clawbacks would be very unusual - here are two examples of situations in which the Fund may need to claw back distributions to satisfy the Fund's obligations (but this is by no means all-inclusive):
- If proceeds have been over-distributed, particularly in a fund with "deal by deal" distribution; or
- In lawsuits where the Fund must indemnify.