True Ups in Private equity

I don’t know the formal definition, but let’s say a GP of a $100 million (fully capitalized) fund earns carried interest of 5%, so he’s entitled to $5 million. The money is kept in an account and the next year the fund loses 3%, or $3 million. The GP would then have to take $3 million out of his $5 million to pay back the LPs for their losses.
Disclaimer: I think this is the way this works from examples that I’ve worked through.
 
I’m not positive, but the description by bpdulog sounds like a clawback.
This is the definition of a clawback: clawback (the provision for when the GP must return profits)
I don’t know what a true up is
 
according to notes.
true up is a way for claw back which should be settled annually
it is compared to the way that claw back is settled in total return the fund earned
 
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