Private Equity Glossary

A B C D E F G H I L M N O P Q R S T V W
Impact Investing
Investing with the dual objective of financial returns and measurable positive social or environmental impact.

Initial Public Offering (IPO)
The process of a private company issuing shares to the public on a stock exchange.

Internal Rate of Return (IRR)
The annualized rate of return earned on an investment accounting for the time value of money.

Investment Memo
An internal document detailing the rationale, analysis, and risks of a proposed investment.

Investment Period
The timeframe during which a fund can make new investments, usually 4–6 years.

Investor
An individual or entity that allocates capital to generate financial returns.