Investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to investor’s goals.
An asset that is not a conventional investment type (stocks, bonds, cash).
When a fund compares its returns to the performance of similar funds.
An acquisition of a controlling interest in a company.
Debt that can be converted to equity when certain conditions are met, like a specific valuation or date.
Fund created by raising money through an IPO, trades its shares on the public market like a stock.
The vetting, analyzing and assessing of individuals, companies and investors before engaging in a transaction.
The period of venture capital investment between seed and late stage deals, when companies have a proven concept and little revenue.
EBITDA Stands for Earnings before interest, taxes, depreciation and amortization, and refers to a company’s net profit plus interest, taxes, depreciation and amortization.
A company’s value calculated as market capitalization, including all debt and equity interests, minus excess cash.
A firm that manages assets, investments and trusts for a wealthy family.
An investment vehicle for limited partners, managed by general partners. Limited partners commit capital to funds, and general partners invest the capital into assets.
A fund that invests in other funds. A fund-of-funds devotes all its time to evaluating fund managers, which usually leads to above-average returns. However, there are extra fees associated with investing in a fund-of-funds.
A process through which a company raises extra cash in exchange, offering share(s) of their ownership rights.
The rate at which the net present value of all cash flows from an investment will equal zero. IRR is commonly used to gauge fund performance.
A company or organization that invests money on behalf of other people.
The use of debt in an investment, including acquisitions and capital expenditures. With leverage, general partners can expedite improvements to portfolio companies and amplify returns.
A financing round between senior and subordinated loans that typically includes equity-based options in the form of warrants.
A diversified portfolio of pooled investor money that can issue an unlimited number of shares.
A company that has received an investment from a venture capital or private equity firm.
Capital that is not noted on the public stock exchange. Private equity involves investors giving private companies capital in exchange for equity.
A state-owned investment fund designed to protect and/or grow a range of financial assets, including stocks, bonds and natural resources.
Another word for acquisition or buyout
A type of private equity investing that focuses on start-ups and early-stage companies with long-term, high-growth potential.
A security that gives the holder the option to purchase a company’s stock at a predetermined price for a specified period.