Agreements also frequently include “clawback” provisions that may come into effect when things don’t go as planned. There are many different structures and variations for defining waterfalls and clawbacks, each leading to different economic consequences for limited partners/members. It is important to understand how these mechanisms work, as an unfavorable waterfall can tilt risk towards the limited partners/members. We will cover different waterfall structures, demonstrate how variations in the structure can alter the economic results, and delve into related waterfall and clawback terms that can impact the overall economic deal.
The ABA will seek 1.5 hours of CLE credit in 60-minute states and 1.8 hours of CLE credit for this program in 50- minute states. Credit hours are estimated and are subject to each state's approval and credit rounding rules. Please visit americanbar.org/mcle for general information on CLE at the ABA.