how to handle a difficult situation

If they found out, cant you just say you left on good terms and they encouraged to say this to not raise any red flags?

Immediately poop your pants.

Don't make a bigger deal out of it than it is. If you got pushed out but kept on, clearly your current firm is supportive of you finding a new role. I would just explain to your managers at your current firm the situation and ask them to give you a good reference as needed. 

I can empathize with the need for moral support and some of the comments here. But I need to hear more. There's asked to leave (blew a deal) and there's ASKED TO LEAVE (your assistant blew you). Personally, I think it's irresponsible to both seek and give that support without revealing the whole story. So get your act together and post it or quash the doubt, leave it off WSO and move on with your career. 

No one will find out, and honestly if they do you can say it was just garden leave and they'd never be able to prove otherwise. Sounds like your old firm was happy to have you land on your feet, just forget about the situation. More MDs get pushed out like this than you'd realize!

I've been in this exact scenario (as part of a RIF). Unfortunately for all of us (but perhaps fortunately for you)., these situations are SUPER common. I was given heads up I would be officially let go by a certain date. I spent the time job hunting. I did NOT find something as fast as you did. You should be very relieved. Take a beat.

Bro you are in a great spot. You have an offer and potentially more on the way. Whatever happened at your old place, whatever the situation, it's not a problem. Funds know shit happens and it's a tough industry and people get fired left and right. The fact that your fund allowed you to stay employed on paper to help you recruit is a testament to that fact and how much they care about you coordinating your story and backing you up, helping you move on successfully in your future. As everyone knows. - It's always easier to get a job when you have a job.You're a VP in PE, you've already crossed one of the biggest hurdles of the associate promote .

Once you're in the industry at that level, it's tough to get pushed out entirely, and it's entirely possible in your career this will happen again, and you'll land on your feet.

I had a similar situation except my whole fund/sleeve shut down, and my employer was nice (big giant asset manager) in giving me a few months as being employed on paper, but didn’t let me keep on longer in order to find a solid next gig. It took well over a year to get a new solid gig of similar caliber. Granted I was very picky (ESPECIALLY for an unemployed person) and turned down a few jobs/offers & torpedoed myself off a couple solid processes along the way because I didn’t feel they were up to par (turns out I was wrong on some of them that 5x’d AUM within the year). Even in my case, most employers were very understanding and got the situation and my rationale for being out of a seat and what I had done in the meantime etc. You never know fully how they “holistically” evaluate candidates, but only a few select interviewers at funds truly dinged me largely because I was out of a seat - I fucking hated the funds that did that. The industry by and large gets it.

Maybe Tiger Global isn’t hiring you but who cares.

Look - to put it in consideration, then they do the background check, they will ask your dates of employment. IF your employer says (and hopefully you got that in writing) they will vouch that you are employed with them, then there is nothing to hide. All a background check says is "Name, Title, Dates Employed". Don't worry about that one. 

This will pass. You'll do fine. The uncertainty is always going to be there. The stress happens. Right now, you need to realize that you have the best "Get out of Jail Free" card in the world and no one will bat an eye that it's in play. You have to step back and look at the big picture here - you're not fired and fighting for unemployment (Saw that happen to a former coworker), you're not laid off under a WARN Notice (been there, done that), you didn't get laid off because your boss wanted to throw you under the bus for their mistake and realized that they couldn't come up with a valid for-cause reason (Again, been there, done that). You are getting let go, with no issues whatsoever, and have their blessing to be employed on paper. That's a dream scenario. I think you're overanalyzing things and need to keep it in perspective. You'll land on your feet and continue to do well. Take the weekend, turn off everything, and enjoy it. Focus on yourself and remember you can only control what you can control, so by worrying about everything else. 

if you're employed "on paper", you are employed. you have nothing to worry about. 

Sounds like your old firm really wants to help you get another job so you should be fine.

I guess I am kind of confused about why they are letting you go. Did they give you a reason?

I mean they offered to give you good references, are letting you stay employed on paper and seem to want to help you find a new job. They are being so nice. So why are they firing you?