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General Category

Term

Definition

Accredited investor According to the US Securities and Exchange Com... more
Alternative assets Class of investments typically used to describe... more
Angel financing Seed capital invested by wealthy individuals. more
Angel investor Wealthy individual who invests in start-ups. more
Business development company (BDC) A publicly traded investment firm that invests ... more
Common stock Equity shares with the fewest rights and least ... more
Comparable Also referred to as "comps", a public or privat... more
Corporate development Office within major corporations that manages s... more
Corporate investor Investment arm of major corporations with the p... more
Exit strategy The method used to realize an investment. more
Family office Professional entity set-up to manage the invest... more
Financial buyer Another description of a private equity firm. ... more
Flipping Selling a portfolio company interest within a s... more
Fund-of-funds A private equity fund that invests in multiple ... more
General partner (GP) The manager of an investment partnership. more
Institutional investor Large, sophisticated investment groups that mak... more
Investment period First several years after the formation of a pr... more
Involuntary exit When a portfolio company goes into liquidation. more
Lead investor Primary investor in a transaction involving mul... more
Liquidity event A partial or full realization on an investment.... more
Newco Generic name given to the new entity when consi... more
Option pool Company shares set aside in a private equity tr... more
Preferred stock Equity shares that are given a higher priority ... more
Private equity Acquiring equity ownership in private companies... more
Private equity allocation Share of investment strategy devoted to the pri... more
Private equity backed company Business owned by a private equity firm. more
Private equity fund The investment vehicle where limited partners h... more
Private equity real estate Sector of the private equity industry focused o... more
Secondary fund Private equity partnerships set-up to acquire l... more
Small Business Investment Company (SBIC) A company licensed by the Small Business Admini... more
Sovereign wealth fund Government owned and controlled fund created ou... more
Strategic buyer Description of a potential acquirer that operat... more
Venture capital Financing for start-up or early stage companies... more
Vintage The date a private equity limited partnership w... more