Arrangement whereby the eventual value of a targeted business depends on its future performance.
The ratio of cumulative distributions to paid-in capital.
The ratio of total gain/(loss) to cost.
Purchase of shares from another investor or to reduce gearing via the refinancing of debt.
The remaining equity which an investor has in a fund.
Public securities which are not freely tradable due to securities regulations.
Residual value to paid In. Ratio of fair market value of the residual portfolio companies to the capital paid in.
Unlike other asset classes, private equity enables investors to cover the entire lifecycle of a company or industry.