In Schewser, the below from Private equity structure and Fees
" It is possible that incentive fees paid over time may exceed 20% of the profits relized when all portfiolio companies have liqudated. This situation arises when returns on portfolio companies are high early and decline later. A clawback provision requires manager to return peridoic incentive fees to investors that would result investors receiving lee than 80% of the profits generated by portfolio investments as a whole. "
I read it several time but I couldn’t understand what is the idea >< !!! specially when it talks about clawback.
Can someone please help me.