The bunch glossary

ARR (Annual Recurring Revenue)

The amount of revenue a company can expect to earn on an annual basis from recurring sources, such as subscriptions or contracts.

DPI (Distributions to Paid-In Capital)

A performance metric showing how much cash a fund has returned to investors relative to the capital they contributed.

Fair Value Accounting

An accounting method that measures assets and liabilities at their current market value rather than historical cost.

Internal Rate of Return (IRR)

A metric used to measure the profitability of an investment, calculated as the discount rate that equates the present value of future cash flows with the initial investment.

Local GAAP (Generally Accepted Accounting Principles)

Accounting standards established within a specific country that govern statutory financial reporting and regulatory compliance.

MRR (Monthly Recurring Revenue)

The amount of revenue generated by a subscription-based business model on a monthly basis.

Net Asset Value (NAV)

The value of a fund’s assets minus liabilities, expressed per share or unit.

Pre-Money/Post-Money Valuation

The value of a company before or after an investment is made, respectively.

TVPI (Total Value Paid In)

A measure of the total value of distributions received from an investment relative to the total amount of capital invested.

Valuation

The process of determining the value of an asset or business, often used to inform investment decisions or financial reporting.