Private Equity Glossary

A B C D E F G H I L M N O P Q R S T V W
Cap Table
A document outlining ownership stakes, types of securities, and dilution effects for a company’s shareholders.

Capital Call
A request by a General Partner to Limited Partners to contribute portions of their committed capital as investment opportunities arise.

Carried Interest
The share (typically 20%) of a fund’s profits earned by the General Partner as performance compensation above a predefined hurdle rate.

Clawback
A contractual clause requiring General Partners to return a portion of carried interest if final fund performance falls below agreed thresholds.

Convertible Debt
A loan that can later be converted into equity at a predetermined price.

Crowdfunding
A method of raising capital from a large number of individuals via an online platform to fund projects or companies.