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Structural Subordination

A subordination of mezzanine capital that is defined by the borrower group's corporate structure. For example, this type of subordination...

Semi-Captive Private Equity Fund

A private equity fund which is a middle ground between a captive private equity fund and an independent private equity...

Real Rate of Return

The growth rate of an investor's purchasing power. It the interest rate that takes into account the effect of inflation....

Rate of Return

The percentage change in the value of an asset over a specific period of time (investment horizon). The following equation...

Return

The absolute benefit (dollar gain) an investor receives from an investment over a period of time. If expressed as a...

Risk Parity

An investment strategy that hinges on the so-called risk allocation (rather than capital allocation) whereby investors target predefined levels of...

Realized Multiple

Another name for distributed value to paid-in ratio (DVPI); a return multiple that is used to assess the investment performance...

RVPI

An acronym for residual value to paid-in ratio; a return multiple that measures the net asset value (NAV) of a...

Residual Value To Paid-in Ratio

A return multiple that measures the net asset value (NAV) of a private equity fund relative to the amount of...

Active Investor

An investor who takes an active role in the management of the company in which he has a large stake...