The bunch glossary

Explore commonly used private market terms.

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AML (Anti-Money Laundering)

Anti-Money Laundering (AML) regulations are critical protocols established to deter criminals from disguising illegally acquired funds as legitimate income.

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.

AUM (Assets Under Management)

The total market value of the investments managed by a financial institution or individual.

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.


Bridge Round

A temporary financing round used to provide a company with enough capital to reach the next funding stage or major milestone.

BRN (Business Registration Number) / Handelsregisternummer

A unique identifier assigned to a business by the government or regulatory authority, used for official records and transactions.

BO (Beneficial Owner)

The natural person who enjoys the benefits of ownership in a security or property, even if the legal title is held by another entity.

BaFin (Bundesanstalt für Finanzdienstleistungsaufsicht)

The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht), Germany's financial regulatory authority.



Capital invested by limited partners into a fund, typically in response to a capital call or drawdown request.

Convertible Debt / Convertible Note

A type of loan that can be converted into equity in a company, typically during a future financing round.

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.


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

CLA (Convertible Loan Agreement)

A legal agreement outlining the terms under which a loan will be converted into equity in a company, typically during a future financing round.

Carried Interest (Carry)

The share of profits from an investment fund that is paid to the fund's manager, typically a percentage of the fund's total returns.

Cap Table

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

Capital Call/Drawdown

A request by a fund manager for investors to transfer a portion of their committed capital to the fund for investment purposes.


A cap is a limit on the maximum valuation at which a convertible note will convert into equity, while uncapped means there is no limit.


Down Round

A financing round in which a company raises capital at a lower valuation than in previous rounds, diluting existing shareholders' ownership stakes.


Payments made by a fund to its investors, typically resulting from realized gains on investments or income generated by portfolio companies.

Discount (Rate/Price)

A reduction in the price of an asset or security, often used to incentivize early-stage investors by offering a lower price per share or a lower valuation during a future financing round.

Deal Memo

A document summarising the key terms and conditions of an investment, often used to facilitate discussion and negotiation between investors and companies.



The process by which an investor realizes gains or losses on an investment, typically through a sale, merger, acquisition, or initial public offering (IPO).

Equity Round

A financing round in which a company raises capital by issuing new shares of stock to investors.


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


FCA (Financial Conduct Authority)

The Financial Conduct Authority (FCA) is an independent regulatory body in the United Kingdom, responsible for overseeing and enforcing regulations in the financial services industry.

Fund of Funds

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


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.


GP/Lead Commitment

The amount of personal capital that a general partner commits to invest in a private equity or venture capital fund.

GP (General Partner)

The individual or group responsible for managing and making investment decisions for a private equity or venture capital fund.


Hurdle Rate

A minimum rate of return that must be achieved before a fund manager is entitled to a share of the profits.


KYC (Know Your Customer)

The process of verifying the identity and suitability of a potential investor or client, typically required by financial institutions and regulatory agencies.


LP (Limited Partner) / (Co-)Investor

Limited partners are investors who provide capital to a private equity or venture capital fund in exchange for a share of the profits.

Liquidation Preference

The priority of payment in the event of a sale or liquidation of a company, often granted to preferred stockholders over common stockholders.


The ability to convert an investment into cash or cash equivalents with minimal impact on the market price.

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.


MRR (Monthly Recurring Revenue)

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

Management Fee

The fee paid to a private equity or venture capital fund's management company for managing the fund's investments, typically calculated as a percentage of the fund's assets under management.

Management Company (ManCo)

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


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.


A public official authorized to certify documents and witness signatures.


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.

Pro-Rata Rights

The right of an investor to maintain their proportional ownership stake in a company during subsequent funding rounds.

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.

Pre-Money/Post-Money Valuation

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

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.



The amount of time a company can sustain its operations with its current cash resources.

Round Size

The amount of capital raised during a particular funding round of a private equity or venture capital investment.


A stage in the funding process of a private equity or venture capital investment, typically characterized by a specific amount of capital raised or a specific set of investment terms.

Right of First Refusal

The right of a party to purchase a certain asset or investment opportunity before it is offered to other parties.


SPV (Special Purpose Vehicle)

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

Side Letters

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

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.

Secondary Transaction

The buying or selling of an existing investment, rather than making a new investment.

Secondary Market

A market for buying and selling existing securities or assets, rather than newly issued ones.


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.


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.

Total Commitment

The total amount of capital committed by investors to a private equity or venture capital fund.

Term Sheet

A document outlining the key terms and conditions of a potential investment, typically used as a basis for negotiations and due diligence.


UBO (Ultimate Beneficiary Owner)

It refers to the individual or entity that ultimately owns or controls, often equating to a 25% or more ownership stake, in a company or asset. The identification of UBOs ensures transparency and prevents illicit activities like money laundering.


Refers to the presence or absence of a cap on the potential returns of an investment or fund.


Venture Round

A funding round in which a venture capital firm invests in a company, typically in exchange for equity.

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.


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

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