American Waterfalls: Why Should Investors Look for a Clawback Feature

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Learn about American style waterfalls and why investors should ensure there is a clawback feature built in.
The American waterfall structure is similar to the European waterfall, but addresses the issue of waiting six to eight years for the manager to unlock their incentive fee. This structure allows for managers to get paid prior to investors receiving their preferred return and 100% of invested capital.
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Origin’s investment platform is available to accredited investors who share their values and want to invest alongside an experienced manager with more than $700 million in assets under management. Our first two funds are averaging a 24% Net return to investors and have achieved top quartile performance, per Preqin data, and we recently raised $151 million for Origin Fund III.

[@user-pu7dy1gb7r]

Thank you. Summed it up just the right way to help me understand.

[@brigadiergeneral2399]

Clawback 😂that money is spent boy