| Term | Meaning |
|---|---|
| PE-backed | Owned, fully or in part, by a private equity firm. |
| Buyout (LBO, MBO, MBI) | An investor buys a controlling stake. LBO is leveraged (debt-funded), MBO is a management buyout, MBI is a management buy-in by outside managers. |
| Secondary buyout | A PE firm sells a company to another PE firm. |
| Growth capital | An investment in a growing company, usually for a minority stake, to fund expansion. |
| Add-on acquisition | A company owned by a PE firm buys another company to build a larger platform. |
| Going private | A public company is bought and delisted. |
| Secondary sale | An exit in which an investor sells its stake to another financial buyer. |
| Exit | When an investor sells its holding, for example through a sale, an IPO or a recapitalisation. |
| Hold period | How long an investor has owned a company. Capital Connect uses 5 to 10 years for Ripe for Exit. |
| AUM | Assets under management: the total value of the investments a firm manages. |
| Portfolio company | A company a PE firm has invested in. |
| Advisor | An investment bank or law firm that works on a deal for one of the parties. |
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