The bunch glossary

Angel Investor

An individual who invests personal funds in early-stage startups in exchange for equity or convertible debt.

Appointed Representative

An Appointed Representative is a firm or person conducting regulated activities under the supervision of a Principal firm authorised by the Financial Conduct Authority.

Business Process Outsourcing (BPO)

The practice of outsourcing specific business functions to external service providers.

Cap Table

A document that displays the ownership structure and equity holdings of a company, including common stock, preferred stock, and options.

Co-Investors

Investors who invest in the same company or project alongside a lead investor.

Common/Preferred Stock

Common stock represents ownership in a company with voting rights, while preferred stock represents ownership with priority claims on dividends and assets but usually no voting rights.

Continuation Fund

A new investment vehicle that acquires assets from an existing fund to extend holding periods.

Equity

Ownership interest in a company, typically represented by shares of stock or other securities.

Fund

A pooled investment vehicle that raises capital from multiple investors to invest in a diversified portfolio of assets, typically managed by a professional investment manager.

Fund Administration

The operational function that manages accounting, reporting, compliance and investor services for a fund.

Fund Intelligence

A data-driven approach that turns fund operations into real-time insights for decision-making and investor reporting.

Fund of Funds

An investment fund that invests in a diversified portfolio of other funds, rather than directly in individual securities or assets.

Growth Equity

Private equity investment that provides expansion capital to established companies without taking control.

Information Rights

The right of an investor to access information about the performance of a private equity or venture capital investment, including financial statements and other confidential data.

Investing

The act of allocating capital with the expectation of generating a return or profit.

Investment Vehicle

A legal structure used to hold and manage investments, such as an SPV or venture capital fund.

LPA (Limited Partnership Agreement)

The legal contract defining the terms, structure and governance of a private fund between the general partner and investors.

Lead Investor

The primary investor in a private equity or venture capital funding round, often with a significant influence on the investment terms and structure.

Management Company (ManCo)

The entity responsible for managing the operations and investments of a private equity or venture capital fund.

Master Feeder Structure

An investment structure where multiple feeder funds pool investor capital into a single master fund that manages the portfolio.

Mezzanine Financing

A hybrid financing method combining debt and equity that ranks between senior debt and equity in the capital structure.

Nominee/(Bare) trust

A nominee in a bare trust is a person or entity that holds assets in their name for the benefit of another party, who retains all control and rights over the assets, as the nominee has no decision-making power over these assets.

Notary

A public official authorized to certify documents and witness signatures.

PE (Private Equity)

An asset class that involves investing in private companies or assets that are not publicly traded, typically with the goal of achieving long-term capital appreciation.

Private Markets

These are venues for trading securities that are not accessible to the general public. It includes transactions in equity and debt of private companies, investments in PE or VC funds, real estate, art, and other investment assets.

Professional Investors

A professional investor, according to the KAGB, is typically an institutional or professional entity that has the necessary experience, knowledge, and expertise to make its own investment decisions and properly assess the risks that such investments may incur.

SPV (Special Purpose Vehicle)

A legal entity created for a specific purpose, such as holding a single asset or investment.

Scout

An individual or organization that provides early-stage investment or support to startups in exchange for equity or other forms of compensation, usually in the name of a larger VC-fund.

Search Fund

An investment vehicle that funds an entrepreneur to find, acquire and run a single privately held company.

Semi-Professional Investor

In the context of the German Capital Investment Code (Kapitalanlagegesetzbuch, KAGB), a “semi-professional investor” is a category of investor that stands between retail (or private) investors and professional investors.

Side Letters

Agreements between a fund manager and one or more investors that modify the terms or conditions of the fund's offering documents.

VC (Venture Capital)

A type of private equity investment focused on providing funding and support to early-stage or high-growth companies with the potential for significant returns.

Venture / Startup

A risky or speculative business or investment opportunity, often with the potential for high returns.