Anything owned by an individual, a business or financial institution that has a present or future value i.e. can be turned into cash. In accounting terms, an asset is something of future economic benefit obtained as a result of previous transactions. Tangible assets can be land and buildings, fixtures and fittings; examples of intangible assets are [..]

This is a standard measure used to assess the performance of a company. Investors need to know whether or not a company is hitting certain benchmarks as this will determine the structure of the investment package. For example, a company that is slow to reach certain benchmarks may compensate investors by increasing their stock allocation.

a kind of short-term financing that allows a company to continue running until it can arrange longer-term financing. Companies sometimes seek this because they run out of cash before they receive long-term funding; sometimes they do so to strengthen their balance sheet in the run up to flotation.

the rate at which a start-up uses its venture capital funding before it begins earning any revenue.

and the general partner

and general partner

A private equity firm that is tied to a larger organisation, typically a bank, insurance company or corporate.

allocation, as agreed in the limited partnership, has been reached. This usually occurs when a fund has agreed a preferred return to investors – a fund may return the cost of investment, plus some other profits, to investors early.

over the life of the fund. So, for example, if a general partner receives 21 percent of the partnership’s profits instead of the agreed 20 per cent, limited partners can claw back the extra one per cent.

the money raised so far so that it can start investing. A fund may have many closings, but the usual number is around three. Only when a firm announces a final closing is it no longer open to new investors.