Finance Category
Term | Definition |
|---|---|
| Acquisition financing | Capital provided to fund the purchase of an add... more |
| Audited financials | Financial statements that have been checked and... more |
| Bridge financing | Short-term capital meant to satisfy a business'... more |
| Capital expenditures | Money spent to upgrade, maintain, or acquire fi... more |
| Carried interest | The share of profits the general partners in a ... more |
| Cash-on-cash | Simplified method to determine an investor's re... more |
| Committed capital | Dedicated investment funds pledged by limited p... more |
| Current ratio | Current assets / Current liabilities more |
| EBITDA | Earnings before Interest Taxes Depreciation and... more |
| Enterprise value (EV) | Total value of a company excluding cash. Enter... more |
| Free cash flow (FCF) | Free Cash Flow = EBITDA - Capital Expenditures more |
| Hockey stick curve | Visual description of a company's annual revenu... more |
| Hurdle rate | The minimum IRR that a potential investment nee... more |
| Internal rate of return (IRR) | Measure of an investment's total return when ta... more |
| Invested capital | Amount of a private equity fund that has been c... more |
| Market cap | Total value of a company's public shares in the... more |
| Mezzanine | The "middle" layer of financing that bridges th... more |
| Net IRR | The effective rate of return limited partners r... more |
| Paid-in capital | The portion of a limited partner's total fund c... more |
| PIPE | Also known as Private Investment in Public Equi... more |
| Preferred return | Private equity fund returns that limited partne... more |
| Secured debt | Loans backed by company assets in the case of d... more |
| Standalone EBITDA | A divestiture candidate's profitability after a... more |
| Subordinated debt | Loan financing that is given a lower preference... more |
| Working capital | Short definition is Current assets minus Curren... more |
| Write down | The reduction in value of an asset or investmen... more |
| Write off | The reduction in value of an asset or investmen... more |