Looking at the Cornerstone LPA for example, I find there's multiple avenues a GP could choose to deal with a defaulting LP. What's, based on industry experience, the rationale for choosing one over the other, and which ones are the most common?
- Removing the LP from the partnership by either considering their interest forfeited or selling it at a discount
- Using distributions to cover capital calls
- Pursuing legal action

And when does it make sense for the GP to waive the interest?

I imagine many of these decisions are down to the individual relationship with the LP, so I'd love to know the common/best practice here.