Glossary

  • Balanced strategy

    A venture fund investment strategy that includes investment in portfolio companies at a variety of stages.

  • Break-up fees

    See abort fees.

  • Bridge financing

    Mezzanine financing for a company expecting to go public within six months to a year or prior to raising a new funding round.

  • Broken deal costs

    See abort costs.

  • Buffer

    Unused credit facility or cash reserves.

  • Burn rate

    rimeframe for a company to use up a capital injection.

  • Burn-out turnaround

    Radical restructuring of a business with severe economic difficulties; new third party funds are brought in and stakes of existing shareholders are diluted.

  • Buyout

    The purchase of what is normally a majority stake in an established mature company.

  • Buyout fund

    A limited partnership set up for the purposes of institutional or management buyouts. An institutional buyout (or buyin) is the purchase of a company by a limited partnership following, or as part of, which the incumbent or new management will be given or acquire a small stake in the business. In a management buyout (or buyin), current/new management usually acquire a more significant shareholding in the business they manage.

Full lifecycle diversification with private equity

Unlike other asset classes, private equity enables investors to cover the entire lifecycle of a company or industry.