Private Equity Glossary — Key Terms & Definitions
- Advisory Committee (LPAC)
- Catch-Up
- Continuation Vehicle
- DIP
- DSCR (Debt Service Coverage Ratio)
- FCFF
- Internal Rate of Return (IRR)
- Net Asset Value (NAV)
- Post-Money Valuation
- Quality of Earnings (QoE)
- 100-Day Plan
- ASC
- Clawback
- CRO
- DCF
- Exit
- Growth Equity
- Holdco
- Placement Agent
- SFDR
- Capital Call
- Capital Commitment
- Closing Adjustment
- CV (Continuation Vehicle)
- DPI (Distributions to Paid-In)
- Drag-Along
- DSO
- Equity Kicker
- Gate
- Operating Partner
- RWI
- Tag-Along
- Terminal Value
- YTM (Yield to Maturity)
- APV
- Cash-on-Cash Multiple
- Distribution
- ICA (Inter-Creditor Agreement)
- Negotiated Sale
- PIK (Payment in Kind)
- Preferred Shares
- Secondary
- Step-Up
- Down Round
- General Partner (GP)
- Investment Period
- Key Person Provision
- Net Debt
- Portfolio Company (PortCo)
- Rollover Equity
- Staple Financing
- Unitranche
- Working Capital
- GP Catch-Up
- Capital Recycling
- Bullet
- Cap Table
- Cash Sweep
- Dry Powder
- Fulcrum Security
- Loan-to-Own
- OID
- Platform Investment
- Waterfall
- Deal-by-Deal Waterfall (American Waterfall)
- Fee Offset (Transaction & Monitoring Fees)
- Acceleration Clause
- BDC
- DDQ
- ESG
- HSR
- Hurdle Rate (Preferred Return)
- ILPA
- Information Memorandum (IM)
- J-Curve
- NOPAT
- PTC
- Reverse Termination Fee
- Top-Tier Fund Access
- Vendor Due Diligence (VDD)
- Vintage Year
- GP-Led Secondary
- Single-Asset Continuation Vehicle (Single-Asset CV)
- Alpha
- Buyout
- CFIUS
- Covenant
- Management Buyout (MBO)
- Public Market Equivalent (PME)
- SaaS
- SPV
- TCV/ACV
- WACC
- Zombie Fund
- Dividend Recap (Div Recap)
- EBITDA
- Enterprise Value
- Limited Partner (LP)
- Management Fee
- PIK Toggle
- QSBS
- Sponsor
- Most-Favored-Nation (MFN)
- Anchor Investor
- Broken Deal Costs
- Conversion Ratio (Preferred Stock)
- Distressed Debt
- ESG Diligence
- Exit Multiple Expansion
- Friends and Family Round
- Fund Extension
- IPO
- Management Incentive Plan (MIP)
- PPM
- Private Credit
- Sandbag Provision
- Direct Alpha
- No-Fault Divorce
- Side Letter
- Carried Interest (Carry)
- CIM
- Commitment Period
- Earn-Out
- Revolver
- TVPI (Total Value to Paid-In)
- Warrant
- Equalization Interest
- Anti-Dilution Protection
- Earn-In
- Escrow
- KS-PME (Kaplan-Schoar PME)
- Leveraged Buyout (LBO)
- Leveraged Recapitalization
- Lockup Period
- MoIC (Multiple on Invested Capital)
- Paid-In Capital
- Recapitalization (Recap)
- Roll-Up
- Soft Commitment
- TSA
- Value Creation Plan (VCP)
- Accredited Investor
- Asset Stripping
- Bridge Loan
- Duration
- ITC
- SBO
- SOFR
- Amortisation
- CAPM
- CCC (Cash Conversion Cycle)
- Due Diligence
- LLCR
- Operational Diligence
- Pre-Money Valuation
- Residual Value to Paid-In Capital (RVPI)
- Subscription Credit Line
- TAB
- Tag-Along Threshold
- Sustainability-Linked Loan (SLL)
- Add-On
- ARR
- Beta (β)
- Bid-Ask Spread (Auction)
- CAC
- Co-Investment
- GP Commitment
- LTV
- Put-Call Option
- Weighted Average Ratchet
- CDMO
- Cliff Vesting
- CLO
- Deal Sourcing
- FCCR
- Full Ratchet
- Fund of Funds
- Limited Partnership Agreement (LPA)
- MAC/MAE
- Mezzanine Debt
- NRR
- Secondary Sale (LP)
- Strategic Buyer
- MIRR (Modified IRR)