What Is a Key Man Clause in Private Equity and Venture Capital?
A key man clause, also called a key person provision, is the section of a private fund's limited partnership agreement (LPA) that names the specific individuals whose continued, active involvement is
Carried Interest Waterfall Explained: How GPs Actually Get Paid
Carried interest is the general partner's share of fund profits, typically 20%, and it flows through a four-tier waterfall that determines exactly when...
Excuse Rights in Private Equity Explained: When an LP Can Opt Out of a Deal and Why GPs Hate Them
An excuse right is a clause in a private equity fund's limited partnership agreement that lets a specific limited partner (LP) sit out one deal, without penalty, when that deal conflicts with the LP's
Equalization Payments in Private Equity: What You Owe When You Join a Fund Late
An equalization payment is the catch-up contribution a new limited partner (LP) makes when joining a private equity fund after its first closing, plus an interest charge that compensates the fund's or