Glossary

  • Ratchet

    Arrangement whereby the eventual value of a targeted business depends on its future performance.

  • Realisation Ratio

    The ratio of cumulative distributions to paid-in capital.

  • Realised Multiple

    The ratio of total gain/(loss) to cost.

  • Replacement Capital

    Purchase of shares from another investor or to reduce gearing via the refinancing of debt.

  • Residual Value

    The remaining equity which an investor has in a fund.

  • Restricted Securities

    Public securities which are not freely tradable due to securities regulations.

  • RVPI

    Residual value to paid In. Ratio of fair market value of the residual portfolio companies to the capital paid in.

Full lifecycle diversification with private equity

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