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English: Catch-up Provision
Definition: refers to a general partner (GP) paid priority return to limited partners (LP), then (GP) corresponding terms of return on investment retroactive provisions of the general partner.
Interpretation: retroactive clause in the partnership agreement is a private equity investment in the common items. For example, the two sides agreed in advance a profit sharing ratio m and the threshold rate of return n, when the actual rate of return r exceeds n, the excess part of the total catch recharge GP, yields until the GP to obtain account real rate of return r the proportion of m far, this The actual rate of return when r * = n / 1-m. If there is excess funds thereafter returns, the return portion exceeds r * according to a fixed ratio (e.g., LP: 80%, GP: 20%) is allocated.
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