R

• Recapitalization

  The process of restructuring a company’s debt and equity mixture, often to stabilize a company’s capital structure.

• Return multiple

  The ratio of an investment's return to its cost, often used as a metric for evaluating the performance of private equity and venture capital investments.

• Return on investment

  (ROI) a financial metric that is used to measure the efficiency of an investment: profit or loss. The result is expressed as a percentage of the origiinal investment.

• Risk Assessment

  Determines the likelihood of loss on an asset, loan, or an investment. Assessing risk is the most important aspect to determine if it is a personal fit for an investor.

• Risk-Adjusted Return

  A metric used to evaluate the performance of an investment by considering both its return and the level of risk involved. It is often presented as a ratio, where higher values typically indicate a more desirable and healthy investment. This allows investors to compare the potential returns of various investments while accounting for the risks associated with each.

• Return

  A measure of an investment's total interest, dividends and capital gains, expressed as a financial gain or loss over a specific timeframe. In its simplest terms, is the money made or lost on an investment over some period of time.

• Risk

  The chance that an outcome or investment's actual gains will differ from an expected outcome or return. Risk includes the possibility of losing some or all of an original investment.

• Redemption requests

  The repayment of any non-traded investment on or before its maturity date. Mutual fund investors can request redemptions for all or part of their shares from their fund manager.

• Real estate operating companies (REOCs)

  A publicly-traded company that actively invests in properties—generally commercial real estate. Unlike real estate investment trusts (REITs), REOCs reinvest the money they earn back into their business and are subject to higher corporate taxes than REITs.

• Realized Value

  The value of the assets in a fund that have been sold for a gain or loss or issued dividends.

• Return on assets

  (ROA) a financial ratio that indicates how profitable a company is in relation to its total assets. Corporate management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit.

• Return on Equity

  (ROE) the measure of a company's net income divided by its shareholders' equity. ROE is a gauge of a corporation's profitability and how efficiently it generates those profits.

• Risk budgeting

  An approach to portfolio construction focusing on analysis of its main sources of risk. This approach forecasts expected volatility and correlation between underlying assets and securities to project total portfolio volatility.

• Risk-Adjusted Return

  A metric used to evaluate the performance of an investment by considering both its return and the level of risk involved. It is often presented as a ratio, where higher values typically indicate a more desirable and healthy investment. This allows investors to compare the potential returns of various investments while accounting for the risks associated with each.

• Round

  Funding that a startup receives from private equity investors or venture capitalists. It is normally the second stage of financing after seed capital and the first major funding round in the venture capital stage. A stage in a company's financing lifecycle, often referred to by letters, such as Series A, B, or C, indicating the order and size of the financing round.

• Real Estate Investment Trust (REIT)

  A company that owns, operates or finances income-generating real estate.

• Roll-Up

  A financial strategy that entrepreneurs use when the business owners want to sell the business.

• Restructuring

  A significant modification made to the debt, operations, or structure of a company in order to eliminate financial harm and improve the business.

• Robo-advisor

  Digital platforms that provide automated, algorithm-driven financial planning services with little to no human supervision.

• Reverse Merger

  A process where a private company becomes publicly traded without going through an initial public offering (IPO).

• Risk Capital

  The funds earmarked by an investor for high-risk, high-reward investments.

• Regulation D (Reg D)

  A Securities and Exchange Commission (SEC) regulation governing private placement exemptions.

• Risk Parity

  A portfolio allocation strategy using risk to determine allocations across various components of an investment portfolio.