Fund Structure · Legal Terms
Fund IV — Key Terms & Structure
Delaware LP · Cayman feeder · European waterfall · Vintage 2022
Investment Thesis
LP-Friendly Structure with Strong Alignment
Fund IV employs a European (whole-fund) waterfall with 30% carry escrow, ensuring LPs receive full return of capital plus 8% preferred return before GP participates in profits. GP commitment of 3% demonstrates skin-in-the-game alignment.
Implication 1
Oversubscription by $250M reflects strong LP confidence — 8 of 10 LPs are re-ups from Fund III.
Implication 2
Clawback provision with escrow holdback provides downside protection rarely seen in mid-market PE funds.
Carry Rate
20%
Above 8% hurdle
Mgmt Fee
2.0%
On committed capital
GP Commit
$83M3%
3% of fund
Escrow
30%
Clawback holdback
Fund IV Term Sheet Summary
11 key provisionsFund Size
$2.75B
Target was $2.5B — oversubscribed by $250M
Management Fee
2%
On committed capital during investment period; on invested capital thereafter
Carried Interest
20%
European (whole-fund) waterfall with GP catch-up
Hurdle Rate
8%
Compounding preferred return before GP participates in profits
GP Catch-Up
100/0
GP receives 100% until 20% of total profit achieved
Post Catch-Up
20/80
Standard carried interest split on remaining distributions
GP Commitment
$82.5M
3% of fund — demonstrates alignment
Investment Period
5 years
New platform investments; bolt-ons allowed outside period
Fund Life
10 years
Two 1-year extensions with LPAC approval
Clawback
Yes
30% escrow holdback on carry distributions. Full clawback to LP preferred return.
Key Person
James Hartwell & Victoria Chen
Suspension trigger if either partner departs during investment period
Waterfall Structure (European / Whole-Fund)
1
Return of Capital
LPs receive 100% of distributions until all called capital ($1.93B) is returned
GP / LP
0 / 100
2
Preferred Return
8% compounding IRR hurdle on called capital before GP participates
GP / LP
0 / 100
3
GP Catch-Up
GP receives 100% until GP has received 20% of total cumulative profits
GP / LP
100 / 0
4
Carried Interest
All remaining distributions split 20% GP / 80% LP in perpetuity
GP / LP
20 / 80
KEY PERSON CLAUSE
If either James Hartwell or Victoria Chen ceases to devote substantially all professional time to Fund IV, the investment period suspends until LPAC vote (majority-in-interest). Cure period: 180 days to propose replacement.