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A transaction where a company’s management team purchases the assets and operations of the business.
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A fee paid by a limited partnership to the general partner for managing the assets of the partnership; and it is used to pay for the fund's operating expenses such as salaries, rent, etc.
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A minority ownership interest in a company, typically less than 50%.
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An investment vehicle that pools money from many investors to purchase a diversified portfolio, primarily investing in public stocks and bonds. They're run by professional money managers who decide which securities to buy and when to sell them.
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The possibility that an individual or other entity will experience losses due to factors that affect the overall performance of investments in the financial markets.
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An investment strategy that seeks to hedge out all or a significant majority of market risk by taking offsetting long and short positions, resulting in extremely low or zero market exposure.
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A hybrid of debt and equity financing that gives the lender the right to convert the debt to an equity interest in the company in case of default, generally, after venture capital companies and other senior lenders are paid.
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The trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year.
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MOIC is a performance metric for private market investments, which indicates the multiple of capital returned at investment maturity. In essence, it shows how many times an investor’s initial capital is regained.
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An investment technique used to mitigate or eliminate downside systemic risk from a portfolio of assets. Macro-hedging strategies typically involve using derivatives to take short positions on broad market catalysts that can negatively affect the performance of a portfolio or a specific underlying asset.
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The degree to which market prices reflect all available, relevant information. If markets are efficient, then all information is already incorporated into prices, and so there is no way to "beat" the market because there are no undervalued or overvalued securities available.
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The risk that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk.
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The difference between the expected return on a market portfolio and the risk-free rate.
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The voluntary fusion of two companies on broadly equal terms into one new legal entity.
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A request by an investor to buy or sell a security at the best available price in the current market.