Carry forfeiture following for-cause removal on the wane, says MJ Hudson
As recently as 2018, around a third of fund terms & conditions had provisions for full forfeiture in the case of for-cause removal, the firm said in its latest "Private Equity Fund Terms Research – Economics, Alignment and Governance" report.
By 2021, this shifted to a market where only around a third of funds have terms that require more than 25% of carry to be forfeited.
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