Glossary

The interest rate at which a certain amount of capital today would have to be invested in order to grow to a specific value at a specific time in the future.

Acquisition cost for private equity fund investments, plus remaining commitments to private equity funds

A company that has received an investment from a private equity fund.

A class of partner in a limited partnership. The general partner retains liability for the actions of the partnership. In the private equity world, the general partner is the fund manager. The general partner earns a management fee and a percentage of profits (see Carried interest)

A fee charged to the limited partners in a fund by the general partner, or the fee charged to investors in a fund of funds by the manager.

A legal entity composed of a general partner and various limited partners. The general partner manages the investments and is liable for the actions of the partnership while the limited partners are generally protected from legal actions and any losses beyond their original investment.

Cash & cash equivalents in relation to the number of shares.

Equity in the relation to the weighted number of shares.

The direct investment by a limited partner alongside a general partner in a portfolio company.

The share in the capital gains of a private equity fund which is allocated to the general partner. Typically, a fund must return the capital given to it by limited partners plus any preferential rate of return before the general partner can share in the profits of the fund.