Carried Value or Carrying Value
Carried Value or Carrying Value – the original cost of an asset, less the accumulated amount of any depreciation or amortization, less the accumulated amount of any asset impairments. This […]
Gross multiple of invested capital (MOIC)
Gross multiple of invested capital (MOIC) expresses as a multiple how much a private equity company has made on the realisation of a gain, relative to how much they paid for it. E.g; […]
MOIC
MOIC is an abbreviation for gross multiple of invested capital. This expresses how much a private equity company has made on the realisation of a gain, relative to how much […]
Carried interest or carry
Carried interest or carry is a term used in the private equity world to describe the performance related fee that a general partner can earn from a successful investment. Often […]
Preferred return
Preferred return – a preferred return is a return that needs to be earned by an investor before lower ranking (often ordinary shareholders or, in the private equity world, General […]
Asset class
Asset class is a term to describe different types of investment – this includes equities (shares), bonds and other forms of debt, cash, private equity, derivatives, property
Waterfall Arrangement
A waterfall arrangement or waterfall payment scheme describes the order in which creditors get paid. Two common uses of the term are within the debt and private equity sectors. In a […]
Liquidity
Refers to the ease of turning an asset into cash. The opposite of liquidity is illiquidity. In the case of shares, liquidity often decreases if you want to trade a lot of shares. […]
Venture Capital Trust
A quoted closed-end fund set up specifically to provide private equity capital to small companies. Investors in venture capital trusts can typically get tax relief for investing in these funds, […]
Non-mainstream pooled investment
The concept of a non-mainstream pooled investment (NMPI) was created by the FCA at the end of 2013. Funds that are classified as non mainstream pooled investment cannot market themselves […]