Private Markets

Private markets pages cover investment in companies and assets that are not traded continuously on public exchanges.

This section groups private equity, co-investments, realization multiples, waterfall structures, and exit mechanics so they can be improved as a coherent private-capital reference set.

In this section

• Angel, Seed, and Venture Financing
  Private-market terms for angel capital, seed funding, venture capital, high-growth startups, and unicorn companies.
  • Angel and Seed Financing
    Angel investing, angel investor, seed capital, and love money terms used in early-stage finance.
    • Angel Investing: High-Net-Worth Individuals Providing Capital for Startups
      An in-depth look at Angel Investing, where high-net-worth individuals provide capital for startups, typically in exchange for ownership equity.
    • Angel Investor: Definition, Mechanism, and Impact on Startups
      An in-depth exploration of angel investors, their role in providing seed money for early-stage startups, the mechanics of their investment, and their significant impact on startup growth and development.
    • Love Money: The Initial Seed Funding from Family and Friends
      An in-depth look at what Love Money means in the context of seed funding, its comparison with angel investors, and its importance in launching business ventures.
    • Seed Capital: Initial Funding for New Ventures
      An in-depth exploration of seed capital, the initial funding required to research and develop new business ideas.
  • Venture Capital and High-Growth Companies
    Venture capital, venture capitalist, unicorn, corporate venturing, and high-growth venture terms.
    • Corporate Venturing Scheme: Strategies for Corporate Innovation
      Corporate Venturing Scheme (CVS) involves large corporations investing in or partnering with smaller, innovative companies to enhance their growth prospects and competitive edge.
    • High-Growth Ventures: Small Businesses Aimed at Rapid Growth and Profit
      High-Growth Ventures are small businesses designed to achieve significant growth and rapid profit increases by utilizing innovative products, aggressive marketing strategies, and investor capital.
    • Unicorn: A Startup Valued at Over $1 Billion
      An in-depth look at unicorn startups, their historical context, types, key events, importance, and considerations for investors.
    • Venture Capital: Financing Innovation and Growth
      Venture Capital is a form of financing provided to early-stage, high-potential, and high-risk startup companies. Learn about its historical context, types, key events, and more.
    • Venture Capitalist: An Investor Providing Capital to Startups with High Growth Potential
      A detailed exploration of venture capitalists, who provide capital to startups and small businesses with high growth potential in exchange for equity.
• Crowdfunding and Alternative Private Funding
  Private funding terms for crowdfunding, donation-based campaigns, reward-based campaigns, and small-investor financing channels.
  • Crowdfunding: Financing Innovation Through Collective Effort
    Explore the comprehensive guide on crowdfunding, covering its history, types, key events, models, importance, and real-world applications.
  • Donation-based Crowdfunding: Funding with Goodwill
    Donation-based crowdfunding is a method where contributors donate money without expecting any financial returns or ownership stakes. It empowers individuals and organizations to gather funds for diverse causes such as charitable projects, creative endeavors, and personal emergencies.
  • Reward-based Crowdfunding: A Comprehensive Overview
    An in-depth look at reward-based crowdfunding, its history, types, key events, importance, applicability, and much more.
• Investor Eligibility and Private Access
  Private-market terms for investor qualification, private transactions, lockups, and access constraints.
  • Accredited Investor Explained: Understanding the Requirements
    A detailed guide on accredited investors, covering financial sophistication, requirements, and the implications of investing in unregistered securities.
  • Lock-in Period: An Essential Component of Investment Strategy
    Understanding the Lock-in Period in investments: Definition, examples, historical context, applicability, related terms, and frequently asked questions.
  • Lock-Up Period: Definition, Mechanism, Uses, and Examples
    A comprehensive guide on lock-up periods, their functionality, primary uses, and real-world examples.
  • Non-Accredited Investor: Definition, SEC Rules, and Comparison with Accredited Investors
    An in-depth look at non-accredited investors, their definition, relevant SEC rules, and a comparison with accredited investors.
  • Private Transactions: An In-Depth Exploration
    An extensive article covering the concept, types, and implications of private transactions. Learn about its historical context, key events, examples, and more.
  • Qualified Professional Asset Manager (QPAM): Comprehensive Definition and Insights
    A detailed exploration of Qualified Professional Asset Managers (QPAMs), their roles, regulatory framework, and impact on financial investments. Gain insights into the qualifications, responsibilities, and significance of QPAMs in the financial industry.
• Mezzanine and Hybrid Private Capital
  Private-market terms for mezzanine debt, mezzanine financing, and hybrid capital between senior debt and common equity.
  • Mezzanine Debt: Definition, Functionality, and Real-World Examples
    Explore the intricacies of mezzanine debt, a hybrid financial instrument subordinated to other debt issues. Learn about its definition, how it works, and see practical examples of its application.
• Private Equity Deals, Sponsors, and Exits
  Private-equity terms for sponsors, co-investments, deal repositioning, exits, and distressed-value strategies.
  • Equity Co-Investment: Definition, Mechanics, and Benefits
    Comprehensive overview of equity co-investment, including its definition, how it works, benefits, and key considerations.
  • Exiting: The Act of Terminating an Investment Position
    Exiting, also known as closing or unwinding, refers to the act of terminating an investment position, often done to realize profits or minimize losses.
  • Private Equity Firm: Investment Strategy and Economic Impact
    A detailed exploration of private equity firms, their strategies, key events, formulas, importance, examples, and related terms.
  • Private Equity Investor: Strategic Investments in Mature Companies
    An in-depth exploration of private equity investors, their role, strategies, types, and impact on mature companies through buyouts and restructuring efforts.
  • Private Equity: Investment in Non-Public Companies
    Comprehensive overview of Private Equity, including its definition, types, historical context, applicability, comparisons with related terms, and more.
  • Repackaging in Private Equity: Key Concepts and Mechanisms
    An in-depth analysis of repackaging in private equity, detailing the process, mechanisms, and strategies for transforming troubled public companies into profitable private enterprises.
  • Vulture Capitalist: Definition, Criticism, and Example
    A comprehensive exploration of vulture capitalists, including their definition, the criticisms they face, and real-world examples.
• Private-Market Capital Commitments and Performance
  Private-market terms for capital commitments, private IRR, net IRR, realization multiples, waterfalls, and carried economics.
  • Capital Commitment: Total Agreed Investment Amount
    Capital Commitment refers to the total amount an investor agrees to provide over the life of an investment, primarily in private equity or venture capital funds.
  • Net Internal Rate of Return: The Investor's IRR After Fees and Carry
    Learn what net internal rate of return means, how it differs from gross IRR, and why private-market investors care about the after-fee result.
  • Private Internal Rate of Return
    Learn what private internal rate of return means in private-market investing and why sponsor timing and cash-flow patterns heavily influence it.
  • Profits Interest: Definition, Usage, and Comparison to Capital Interest
    An in-depth exploration of profits interest in partnerships, including definitions, usage, and comparisons to capital interest.
  • Realization Multiple: Definition, Calculation, and Importance in Private Equity
    A detailed look at the realization multiple, explaining its significance in private equity, its calculation, and how it provides insights into investment performance.
  • Waterfall Structure: Priority of Distributions in Private Equity
    A comprehensive exploration of the Waterfall Structure used in private equity to outline the priority of distributions, including historical context, types, key events, mathematical models, charts, importance, applicability, examples, related terms, and FAQs.
• Private-Market Tax and Special Vehicles
  Private-market terms for investment schemes, venture capital trusts, small-business investment companies, and tax-shaped vehicles.
  • Close Investment Holding Company: Detailed Overview
    A comprehensive guide to Close Investment Holding Companies (CIHC), their historical context, categorization, key characteristics, regulations, and relevance in modern finance.
  • Enterprise Investment Scheme: Comprehensive Guide
    An in-depth guide on the Enterprise Investment Scheme (EIS), its history, types, key events, benefits, mathematical models, and more.
  • Small Business Investment Company (SBIC): Financial Support for Small Businesses
    A Small Business Investment Company (SBIC) is an entity that provides financial support, advice, and capital to small businesses, operating under the Small Business Investment Act of 1958.
  • Venture Capital Trust: Investment Vehicles for Small Businesses
    Venture Capital Trusts (VCTs) are investment trusts that provide risk capital to smaller unlisted trading companies, offering tax incentives and high-risk, high-reward opportunities for investors.