Mid-market private equity firm Fenway Partners could reportedly lose part of the carried interest it earned on its second fund due to poor performance.
The firm, which is currently investing on a deal by deal basis, faces a clawback on its second fund which was closed on $909m in 1998, said Dow Jones, citing people with knowledge of the matter.
Fenway could lose as much as nearly $30m if the fund’s performance does not iprove by the end of the partnership, which continues to be extended, said the people.
Earlier this year it was reported that Fenway was preparing to sell NFL helmet maker Easton-Bell Sports for up to $900m in a deal that could help it win LP backing for further buyouts.
Fenway has struggled in the wake of the financial crisis and has failed to make a new purchase in about two years.
It has turned to a deal-by-deal strategy rather than raising a new fund according to a report by Dow Jones.
Fenway last raised $700m for its 2007 vehicle, and has gathered more than $2bn of capital across three funds.
Copyright © 2013 AltAssets