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Home Dictionary P Private Investment Fund Private investment funds are those that do not attract public investment. Private foundations are classified as such under the exceptions provided by the Investment Company Act 1940. Hedge funds and private equity funds are the two most common types of private equity funds. Angel Investor Definition and How It Works
September 25, 2022 An angel investor is usually a wealthy person who finances early-stage startups, often with their own funds. Distribution Waterfall
September 25, 2022 The distribution waterfall determines the order in which the profits from pooled investments are distributed to the investors in the pool. Equity Co-Investment
September 25, 2022 Equity co-investment is a relatively small investment made in a company at the same time as a larger private equity or venture capital investment. Private Placement
September 25, 2022 Private placement is the sale of securities to a predetermined number of individuals and organizations. Promoter
September 25, 2022 A promoter is an individual or organization that helps raise money for some kind of investment activity. Realization Multiple
September 25, 2022 The realization multiplier is used in private equity to measure the actual money returned to investors. Tag-Along Rights
September 25, 2022 Accompanying rights are contractual obligations to protect a minority investor in a startup or company. Traunch
September 25, 2022 Traunch is one of a series of investments that are made subject to the achievement of performance targets. Unicorn
September 25, 2022 Unicorn is a term used in the venture capital industry to describe a start-up company valued at over $1 billion. Venture Capital
September 25, 2022 Venture financing is financing provided to companies and entrepreneurs. It can be provided at different stages of their development, although it often includes early and seed funding. Venture Capital Funds
September 25, 2022 Venture capital funds manage pooled investments in high-growth opportunities in start-ups and other early-stage firms. Venture Philanthropy
September 25, 2022 Venture capitalists sometimes use their resources for charitable work. This is called venture philanthropy. Vulture Capitalist
September 25, 2022 A vulture capitalist is an investor who buys troubled companies whose prices have fallen heavily in the market. 18-Hour City
September 25, 2022 Eighteen o’clock cities are vibrant small urban areas that are proving to be attractive to new residents, entrepreneurs and investors. 48-Hour Rule
September 25, 2022 The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA). Absorption Rate
September 25, 2022 The takeover ratio is commonly used in the real estate market to determine how many houses are on the market at a given time. Adjusted Funds From Operations (AFFO)
September 25, 2022 Adjusted Funds from Operations (AFFO) is a financial measure used to value a real estate investment fund (REIT). Alternative Investment
September 25, 2022 An alternative investment is a financial asset that does not fall under the usual capital/income/cash categories. Appraisal Management Company (AMC)
September 25, 2022 A Valuation Management Company (AMC) is an independent real estate appraisal company hired by a lender to appraise a potentially mortgaged property. Bespoke CDO
September 25, 2022 An individual CDO is a collateralized debt obligation tailored to the specific needs of a specific group of investors. Capital Improvement
September 25, 2022 A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration. Capitalization Rate
September 25, 2022 The capitalization rate is calculated by dividing the property’s net operating income by the current market value. Collateralized Mortgage Obligation (CMO)
September 25, 2022 Collateralized mortgage obligations are investment debt securities consisting of packaged mortgage loans organized according to their risk profiles. Commercial Real Estate
September 25, 2022 Commercial property refers to property used specifically for business or income. Dark Pool
September 25, 2022 Dark pools are private asset exchanges designed to provide additional liquidity and anonymity when trading large blocks of securities away from prying eyes.