clawback
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University of Texas *
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Course
387
Subject
Finance
Date
Apr 3, 2024
Type
xlsx
Pages
15
Uploaded by UltraFalconMaster1014
UT Fall 2022
Clawback Example
Answer
Assumptions:
Fund Size
$ 2,000,000,000 Investments
16
Size of each investment
$ 125,000,000 Carried interest
20%
Management fee
2%
Hurdle rate
0%
Distributions
From inception
Initial liquidated investments
7
Exit value of each initial exit
$ 600,000,000 Liquidation value of initial exits
$ 4,200,000,000 Distributible proceeds
$ 4,200,000,000 Invested capital in initial exits
875,000,000 Distributable proceeds
$ 3,325,000,000 Distributions
GPs
$ 665,000,000 LPs
$ 2,660,000,000 Assumptions:
Fund Size
$ 2,000,000,000 Investments
16
Size of each investment
$ 125,000,000 Carried interest
20%
Management fee
2%
Hurdle rate
0%
Distributions
From inception
Initial liquidated investments
7
Exit value of each initial exit
$ 600,000,000 Liquidation value of initial exits
$ 4,200,000,000 Additional liquidated investments
9
Exit value of each additional exit
$ 80,000,000
Liquidation value of additional exits
$ 720,000,000 Invested capital in additional exits
1,125,000,000 Distributable proceeds
-$ 405,000,000 Distributions
GPs
-$ 81,000,000 LPs
-$ 324,000,000 Clawback
-$ 81,000,000 Total liquidation value of exits
Initial exits
$ 4,200,000,000 Additional exits
720,000,000 Total
$ 4,920,000,000 Invested capital
$ 2,000,000,000 Net distributable proceeds
$ 2,920,000,000 Total Distributions Including the Initial Capital Invested
GPs
$ 584,000,000 LPs
$ 2,336,000,000
Question
Assumptions:
Fund Size
Investments
Size of each investment
Carried interest
Management fee
Hurdle rate
Distributions
Initial liquidated investments
Exit value of each initial exit
Liquidation value of initial exits
Distributible proceeds
Invested capital in initial exits
Distributable proceeds
Distributions
GPs
LPs
Assumptions:
Fund Size
Investments
Size of each investment
Carried interest
Management fee
Hurdle rate
Distributions
Initial liquidated investments
Exit value of each initial exit
Liquidation value of initial exits
Additional liquidated investments
Exit value of each additional exit
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Liquidation value of additional exits
Invested capital in additional exits
Distributable proceeds
Distributions
GPs
LPs
Clawback
Total liquidation value of exits
Initial exits
Additional exits
Total
Invested capital
Net distributable proceeds
Total Distributions Including the Initia
GPs
LPs
$ 2,000,000,000 16
$ 125,000,000 20%
2%
0%
From inception
7
$ 600,000,000 $ 2,000,000,000 16
$ 125,000,000 20%
2%
0%
From inception
7
$ 600,000,000 9
$ 80,000,000
al Capital Invested
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UT Fall 2023
Cap and Payout Tables
Answer
Assumptions
Series A Invesment
$ 10,000,000 Post-money valuation
$ 50,000,000 VC1 Ownership post A round
20%
Founder investment
$ 2,000,000 Management investment
$ - Table 1
Cap Table
Pre-Investment
Ownership
Shareholder
Shares
Percentage
Founder
2,000,000 83%
Management
400,000 17%
Total
2,400,000 100%
Table 2
Cap Table
Post-Common Investment
Ownership
Shareholder
Shares
Percentage
VC1
600,000 20%
Founder
2,000,000 67%
Management
400,000 13%
Total
3,000,000 100%
Table 3
Payout Table - All Common Stock
$20 million acquisition proceeds
Ownership
Total
Shareholder
Shares
Percentage
Payout
VC1
600,000 20%
$ 4,000,000 Founder
2,000,000 67%
$ 13,400,000 Management
400,000 13%
$ 2,600,000 Total
3,000,000 100%
$ 20,000,000 Table 5
Payout Table - Convertible Preferred Stock
$20 million and $60 million acquisition proceeds
$20 million acquisition proceeds
Ownership
Shareholder
Security
Shares
Percentage
VC1
Preferred
600,000 20%
Founder
Common
2,000,000 67%
Management
Common
400,000 13%
Total
3,000,000 100%
$60 million acquisition proceeds
$ 40,000,000 Ownership
Shareholder
Security
Shares
Percentage
VC1
Preferred
600,000 20%
Founder
Common
2,000,000 67%
Management
Common
400,000 13%
Total
3,000,000 100%
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Question
Assumptions
Series A Invesment
Post-money valuation
VC1 Ownership post A round
Founder investment
Management investment
Table 1
Cap Table
Pre-Investment
Shareholder
Shares
Founder
2,000,000 Management
400,000 Total
2,400,000 Table 2
Cap Table
Post-Common In
Shareholder
Shares
VC1
Founder
Management
Total
Table 3
Payout Table - A
$20 million acqui
Net
Payout
Shareholder
Shares
$ (6,000,000)
VC1
$ 11,400,000 Founder
$ 2,600,000 Management
$ 8,000,000 Total
Table 5
Payout Table - C
$20 million and $
$20 million acquisition proceeds
Total
Net
Payout
Payout
Shareholder
Security
$ 10,000,000 $ - VC1
$ 8,333,333 $ 6,333,333 Founder
$ 1,666,667 $ 1,666,667 Management
$ 20,000,000 $ 8,000,000 Total
$60 million acquisition proceeds
Total
Net
$ 40,000,000 Payout
Payout
Shareholder
Security
$ 12,000,000 $ 2,000,000 VC1
$ 40,200,000 $ 38,200,000 Founder
$ 7,800,000 $ 7,800,000 Management
$ 60,000,000 $ 48,000,000 Total
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$ 10,000,000 $ 50,000,000 20%
$ 2,000,000 $ - Ownership
Percentage
83%
17%
100%
nvestment
Ownership
Percentage
All Common Stock
isition proceeds
Ownership
Total
Net
Percentage
Payout
Payout
Convertible Preferred Stock
$60 million acquisition proceeds
Ownership
Total
Net
Shares
Percentage
Payout
Payout
Ownership
Total
Net
Shares
Percentage
Payout
Payout
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