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Flight To Liquidity

The substitution of less liquid assets for more liquid assets (investments). This constitutes a reallocation tactic whereby investors sell what…

Contractual Subordination

A subordination of mezzanine capital whereby a lender contractually agrees to be subordinated to another. A borrower effectuates this though…

Mezzanine Capital

A distinct sub-asset class (actually, a type of private equity) that is used to fill the funding gap between senior…

Money-Weighted Return

A form of return that is used to measure the performance of an investment, reflecting the amount of money that…

Hands-Off Investor

An investor who takes a passive role in the management of the company in which he has a large stake…

Hands-On Investor

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

Mezzanine Fund

A private equity fund which focuses on mezzanine financing, i.e., it uses subordinated debt with some degree of equity participation…

Modified Internal Rate of Return

In relation to a fund/ a portfolio (also, private equity investments), it is the discount rate that equalizes the initial...

MIRR

It stands for modified internal rate of return; in relation to a fund/ a portfolio (also, private equity investments), it is...

Modified IRR

It stands for modified internal rate of return; in relation to a fund/ a portfolio (also, private equity investments), it is...