PE-IB Glossary

Glossary 6: Beta and the use of beta in Private Equity

Beta is a financial metric that measures the sensitivity of an asset’s returns in relation to the overall market movements, typically represented by a stock market index. In the realm of private equity, Beta plays a crucial role in valuing [...]

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Glossary 5: Capital Structure and Private Equity Capital

The capital structure of a company plays a crucial role in its financial stability and overall business performance. Private equity, or “Đầu tư vốn cổ phần chưa đại chúng,” introduces innovative instruments like mezzanine debt and hybrid equity, significantly [...]

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Glossary 4: Pre-Money vs Post-Money

In private equity investment, the concepts of pre-money and post-money valuations play a pivotal role in assessing the value of a company (or market capitalisation) before and after an investment round. The pre-money valuation represents the estimated worth of [...]

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Glossary 3: Multiple on Invested Capital (MOIC)

Multiple on Invested Capital (“MOIC”) is a metric used to describe the value or performance of an investment relative to its initial cost, commonly used within private equity (PE). MOIC is among the most relevant metrics to be assessed [...]

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Glossary 2: Carried Interest

Private Equity (PE) managers always seek for carried interest, which is sometimes far more significant than regular remuneration and can make up the main part of the Private Equity Managers’ wealth. Carried interest is a fundamental component of compensation in [...]

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Glossary 1 – Private Equity

Private Equity is considered a financial booster shot for growth companies, and sometimes a financial superhero saving distressed firms. It’s an asset class where investors provide funds to businesses in exchange for ownership or a share in the company. [...]

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