Private Equity Glossary

A B C D E F G H I L M N O P Q R S T V W
Early Stage
The initial phase of startup development corresponding to seed and Series A financing rounds focused on product validation and market traction.

Earn‑Out
A deferred payment mechanism in an acquisition where a portion of the purchase price depends on future performance targets.

Equity
Ownership interest in a company represented by shares.

Escrow
A holding account used to secure funds pending completion of contractual obligations.

ESG Due Diligence
Evaluation of environmental, social, and governance risks and impacts of a target company or asset before an investment.

ESG Reporting
Disclosure of environmental, social, and governance metrics and practices.

Evergreen Fund
An investment fund without a fixed life span, allowing continuous capital raising and deployment.

Exit
The realization event in which an investor sells its stake, such as an IPO or acquisition.