Private Equity

Alternative Investment Fund Managers Directive: Comprehensive Overview
A detailed exploration of the EU directive bringing hedge funds and private equity firms under regulatory supervision, its implications, history, and key components.
Asset Stripping: Corporate Takeover Strategy
The acquisition of a company whose shares are valued below their asset value and the subsequent sale of the company's assets for profit.
BIMBO: Buy-In Management Buy-Out Explained
A detailed explanation of Buy-In Management Buy-Out (BIMBO), including historical context, types, key events, formulas, examples, related terms, and more.
Bootstrap: Startup Financing and Buyouts
An in-depth exploration of Bootstrap - covering leveraged buyouts and the financing of startups with minimal capital.
Capital Commitment: Total Agreed Investment Amount
Capital Commitment refers to the total amount an investor agrees to provide over the life of an investment, primarily in private equity or venture capital funds.
LBO: Leveraged Buyout
An in-depth look at leveraged buyouts, their history, mechanisms, key events, and importance in finance.
Leveraged Buy-Out: High-Risk Investment Strategy
A leveraged buy-out (LBO) is a financial transaction where a company's equity is acquired primarily through borrowed funds. This strategy is high-risk due to the large proportion of debt financing.
Leveraged Buy-Out (LBO): Acquisition Using Significant Debt
Leveraged Buy-Out (LBO) involves acquiring a company by using a significant amount of borrowed money. This financial technique is often employed to enable large-scale acquisitions without committing a large amount of equity.
Leveraged Buyout: A Strategic Acquisition Approach
A detailed overview of Leveraged Buyout (LBO), including its history, mechanisms, significance, and related terms in the realm of finance and investments.
Leveraged Finance: Amplifying Investment Returns with Borrowed Funds
Leveraged finance involves using borrowed funds to increase the potential return on an investment. It plays a significant role in the fields of corporate finance, private equity, and investment banking.
Limited Partners (LPs): Investors Who Commit Capital to Funds
Limited Partners (LPs) are investors who provide capital to private equity or venture capital funds, enjoying limited liability and minimal control over fund operations.
Management Buy-In: External Managers Acquiring a Company
A management buy-in (MBI) involves external managers acquiring a company, often with venture-capital backing, to implement new management strategies and drive value.
Pre-IPO: The Phase Before Going Public
The pre-IPO phase refers to the period before a company goes public, during which it offers shares to select investors and prepares for an Initial Public Offering (IPO).
Private Equity: Investment in Non-Public Companies
Comprehensive overview of Private Equity, including its definition, types, historical context, applicability, comparisons with related terms, and more.
Private Equity (PE): Capital Investment Made into Companies that Are Not Publicly Traded
Detailed overview of Private Equity (PE), discussing its definitions, types, special considerations, historical context, examples, applicability, related terms, and frequently asked questions.
Risk Capital: High-Risk Investments for High Returns
Comprehensive guide to understanding risk capital, its importance, types, key events, mathematical models, charts, applications, examples, and related terms in finance and investments.
Shareholder Debt: Tax-Deductible Equity
Shareholder debt is a type of risk-bearing equity treated as debt for tax purposes. It is commonly associated with private equity firms and highly leveraged funding arrangements.
Taper Relief: Historical Capital Gains Tax Relief Mechanism
Taper Relief was a relief applied in computing the capital gains tax (CGT) charge on a capital gain, introduced in 1998 and abolished in April 2008. It provided tax reductions of up to 40% for non-business assets and 75% for business assets.
Waterfall Structure: Priority of Distributions in Private Equity
A comprehensive exploration of the Waterfall Structure used in private equity to outline the priority of distributions, including historical context, types, key events, mathematical models, charts, importance, applicability, examples, related terms, and FAQs.
Accredited Investor: Definition and Criteria
An accredited investor is an individual or entity that meets specific financial criteria established by the SEC under Rule 501 of Regulation D, allowing them to invest in private limited partnerships without being counted towards the 35-person limit.
Alternative Investments: Investments Beyond Stocks and Bonds
Explore alternative investments encompassing a range of options beyond traditional stocks and bonds, including art, coins, precious metals, stamps, arbitrage, derivatives, hedge funds, leveraged buyouts, private equity, real estate, and venture capital.
Capital Calls: Requests for Additional Investment Funding
Capital calls are requests for additional funds from investors to cover deficits, primarily seen in private equity and venture capital domains. Corporate stockholders are usually not legally obligated to meet these calls.
Equity Kicker: A Strategic Investment Enhancer
An in-depth look at the concept of an equity kicker, a term used in finance to signify a form of compensation provided to lenders, which offers them potential upside in the form of equity in a company.
Carried Interest: Who Benefits and How It Works
An in-depth exploration of carried interest, detailing its mechanism, beneficiaries, historical context, legal considerations, and its role in private equity, venture capital, and hedge funds.
Repackaging in Private Equity: Key Concepts and Mechanisms
An in-depth analysis of repackaging in private equity, detailing the process, mechanisms, and strategies for transforming troubled public companies into profitable private enterprises.
Series B Financing: Definition, Examples, and Key Funding Sources
An in-depth exploration of Series B financing, covering its definition, examples, and the primary sources of funding for businesses during this crucial growth stage.
tZero: Blockchain Innovations in Private Capital Markets
An exploration of tZero, a technology company leveraging blockchain in private capital markets, connecting startups with private equity, and navigating regulatory landscapes.

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