On July 28, Susanne St. Pierre and Abhijit Nagaraj published “Can Fund Sponsors Escape the Clawback?” in the New York Law Journal analyzing the clawback provisions in real estate fund agreements. The following is an excerpt:
The clawback is a known right set forth in the fund agreement. The issue is whether an investor’s exercise of other rights within the scope of its authority under the fund agreement demonstrates an intent to relinquish the clawback right—that is, whether such exercise is inconsistent with the intent to enforce the clawback and constitutes a voluntary and intentional abandonment of that right.
Click here for the article.