As properties sell, proceeds run through the waterfall. At the end, the GP pays remaining liabilities, performs the clawback test, releases or returns escrowed carry, issues final K-1s and dissolves the partnership. Expect the final K-1 and a final statement; keep them for your records.
Related
- Carried Interest and Clawback
- Distribution Waterfalls: Deal-by-Deal vs. European (with a Worked Example)
Your journey
More on this stage: Deep Dive: Votes, Consents and Amendments · Deep Dive: Estate Planning for LP Interests