Alternative investments refer to financial assets that fall outside the traditional categories of stocks, bonds, and cash. These can include tangible assets like art and real estate, as well as financial instruments like hedge funds and private equity.
Refers to a start-up company, typically in the IT field, that is designed to be sold to an acquirer at the earliest opportunity rather than built up into an enduring concern.
A Buy-In Management Buy-Out (BIMBO) is a strategic acquisition where existing management, along with external investors, purchase a company, offering a blend of insider expertise and additional capital with more managerial control.
A club deal is a specific type of financial arrangement whereby a small group of investors or financial institutions jointly fund a particular investment, typically in a syndicate arrangement. These deals are common in private equity, venture capital, and large-scale lending.
A former UK scheme designed to encourage established companies to invest in the full-risk ordinary shares of companies similar to those qualifying under the Enterprise Investment Scheme (EIS). Companies investing through the CVS obtained corporation tax relief (at 20%) on the amount invested, provided that the shares were held for at least three years. The scheme was discontinued in 2010.
External funds are financial resources that a company secures from outside its organization to support its operations, typically through means like bank loans, bond offerings, or venture capital infusions.
An informal name for a company with the potential to grow quickly, providing it can obtain substantial capital; risks are likely to be high. The information technology industry is an example of a sector that has included a number of mad dogs.
Management Buy-In (MBI) is the acquisition of a company by an external team of managers, often financed by a venture-capital organization. It involves bringing in new management to revitalize a target company and optimize its operations.
A comprehensive overview of merchant banks, evolving from financing foreign trade to multifaceted financial institutions providing venture capital, advising on takeovers, and managing investment portfolios.
A Private Equity Fund is a collective investment scheme used primarily for acquiring or providing business capital, usually structured as a limited partnership, that receives capital from various accredited and institutional investors.
Risk capital refers to the funds invested in projects with a high level of uncertainty, such as new ventures or expanding businesses, where substantial risk exists but the potential for high returns is present.
Seed money is the initial capital used to start a business, often provided by venture capitalists, and can take multiple forms including subordinated loans, convertible bonds, or preferred stock.
A start-up is a new business venture, especially in its earliest stage, often funded by venture capital based on a detailed business plan.
Venture capital is a form of private equity financing provided by venture capital firms or individual investors to early-stage, high-potential, and high-risk startup companies.
A management team assembled for the purpose of a new business operation. A venture team supervises and manages a start-up business, attending to all the details from raising venture capital to managing the initial operations.
