Private Credit Glossary — Key Terms & Definitions
- Add-On Acquisition
- BDC
- Direct Lending
- EURIBOR
- Fair Value
- ICA
- Make-Whole Premium
- Mezzanine Debt
- Non-Traded BDC
- NOPAT
- Revolver (Revolving Credit Facility)
- RVPI
- Tag-Along
- Vintage Diversification
- Interest Coverage (IC) Test
- Amortisation
- AUM (Assets Under Management)
- Carried Interest
- Default
- Expected Loss (EL)
- J-Curve
- Loss-Given-Default (LGD)
- Stretch Senior
- Term SOFR
- Warrant
- Regulated Investment Company (RIC)
- Net Investment Income (NII)
- Clawback
- Covenant
- Enterprise Value
- GFC
- Management Fee
- Step-Up
- WACC
- Overcollateralization (OC) Test
- Middle Market CLO (MM CLO)
- All-In Yield
- Cov-Lite TLB
- Interval Fund
- TVPI
- Vintage Year
- Yield to Takeout
- Cash Sweep
- Covenant-Lite
- Delayed Draw Loan
- Down Round
- Duration
- Gordon Model
- Illiquidity Premium
- LIBOR
- Springing Covenant
- Last-Out Tranche
- Catch-Up
- Current Yield
- LPA (Limited Partnership Agreement)
- Nonaccrual
- OID
- Side Letter
- Watchlist
- Adjusted EBITDA
- DCF
- Distribution Waterfall
- European Waterfall
- Fee Drag
- Middle Market
- MOIC
- Probability of Default (PD)
- Risk Premium
- SONIA
- Unitranche
- Workout
- Beta
- GP
- Hurdle Rate
- LBO
- Maintenance Covenant
- Net Debt
- Equity Cure
- Black-Cox Model
- Broadly Syndicated Loan (BSL)
- Down-and-In Option
- EBITDA
- Equity Kicker
- IRR
- Leverage Ratio
- Public BDC
- Soft-Call Protection
- DIP Financing
- Capital Call
- Dry Powder
- Equity Contribution
- Full Ratchet
- IPO
- LP
- Most-Favored-Nation (MFN) Protection
- SBIC
- SOFR
- Terminal Value
- Accordion Feature
- Cap Table
- Dividend Recap
- DPI
- Drag-Along
- DSCR
- Level 3 Asset
- Sponsor
- Sponsor-Backed Deal
- Anti-dilution
- CCC (Cash Conversion Cycle)
- CLO
- Incurrence Covenant
- Loan Origination
- Net Asset Value (NAV) Loan
- Preferred Shares
- Weighted Average Ratchet
- Debt Yield
- American Waterfall
- ASC 820
- CAPM
- Direct Lending Fund
- First Lien
- Impairment
- Non-Sponsored Lending
- Post-Money
- Sale-Leaseback
- Serial Correlation
- Subscription Line
- BDC Asset Coverage Ratio
- APV
- Bridge Loan
- Commitment Fee
- FCFF
- Loan-to-Cost (LTC)
- NAV
- Perpetual BDC
- Pull-to-Par
- Recovery Rate
- Second Lien
- Alpha
- Bullet
- Hard-Call Protection
- Original Issue Discount (OID) Spread
- PIK
- Pre-Money
- Secondary Buyout
- Senior Stretch
- Sharpe Ratio
- Tranche
- First-Out Tranche
- Credit Spread
- Floating Rate
- Non-Investment Grade
- Preferred Return
- Senior Secured Loan
- YTM
- Agreement Among Lenders (AAL)