#KeynesNoteN3 : Commonly used words & phrases 

1-#Trade_sale : When a fund sells its equity stake to another business, a form of exit.

2- #Responsible_investment : An approach to investing that aims to incorporate environmental, social and governance (#ESG) factors into investment decisions to better manage risk and generate sustainable long-term returns.

3- #Returns : The profits made by a VC or PE firm when they sell an equity stake. There are a number of different ways of calculating returns but the two most common are IRR and cash (or money) multiple. 

4- Return On Investment (#ROI) : ROI is a performance measure used to evaluate the efficiency of an investment. To calculate the return on an investment, the benefit/profit (or return) of an investment is divided by the cost of the investment. 

5- #Round : When an early-stage company raises money from VC investors, this is called a round. 
 
6- Venture Capital Trusts (#VCTs) : A type of venture capital fund that is listed on the stock market and which invests in small companies.

7- #Add-on/Bolt-on/Build-up/ Acquisition : The purchase of a company by an existing portfolio company funded by a private equity fund. 

8- #Bridge_equity_financing : 
Financing made available to a company in the period of transition from being privately owned to being publicly quoted.

9- #PIPE : Generally referring to a Private Investment in Public Equity (PIPE). 

10- #Public_toPrivate : Purchase of quoted shares with the purpose of de-listing the company from a stock exchange.

11- #Rescue/Turnaround : Financing made available to an existing business, which has experienced financial distress, with a view to re-establishing prosperity.

12- #Start_up : Companies may be in the process of being set up or may have been in business for a shorter time, but have not sold their product commercially yet. 

13- Leveraged Buyout (#LBO) or Buyout : Majority equity investments in companies acquired typically with the use of financial leverage.

14- Management Buy-Out (#MBO) : Achat d'une entreprise par son management actuel, souvent en partenariat avec des investisseurs extérieurs.

15- Owner Buy-Out (#OBO) : Achat d'une entreprise par un nouveau management, souvent avec l'appui d'autres investisseurs.

16- #Hurdle_Rate : Taux de rendement minimum à atteindre avant que les gestionnaires puissent percevoir un carried interest.

17- Letter Of Interest (#𝗟𝗢𝗜) : Lettre d'intention précisant les termes généraux selon lesquels un fonds serait disposé à effectuer un investissement.

18- #Portfolio_CompanyFees : Fees that the GP charges its portfolio companies for various services.

19- #Savings : Reduction of economic costs through negotiations or sourcing of co-investment opportunities, which usually include zero management fee and zero carried interest.