waterfalls
How do clawbacks fit into sponsor economics?
Clawbacks protect investors if interim sponsor carry exceeds what the sponsor should receive after final portfolio results are known.
A clawback matters when early distributions pay sponsor promote before the full economic picture is settled. In SponsorBeast, treat this as an operating workflow for sponsors modeling investor distributions, preferred returns, catch-ups, and promote, not as a loose finance concept. Start by naming the decision owner, the inputs required, the document that records the answer, and the next review date. Then connect the work to deal modeling, document drafting, distribution approval, exit planning, and post-distribution reconciliation so investors, counsel, lenders, administrators, and portfolio operators can see what is complete, what is blocked, and what must happen before capital moves or a decision becomes final. Track carry paid, carry reserves, tax distributions, guarantee obligations, and final true-up exposure so the sponsor is not surprised at wind-down.