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GLOSSARY

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MBO (Management Buyout):
Private equity investor finances a management team to acquire control of a company from the former ownership group.


Mezzanine
Term is used differently in the real estate, venture and buyout worlds: in real estate it refers to subordinated debt financing, usually collateralized by a specific property or a portfolio of properties; in venture, it refers to the equity financing round just prior to an IPO, or can also refer to mid or late-stage venture financing; in buyouts, it refers to subordinated debt financing, usually with attached warrants, of more mature, stable, cash flowing companies.

Multiple
Used either in reference to the multiple of cost a particular investment achieved (see ROI), or in reference to company valuation as a multiple of various income statement parameters.

Multi-stage Venture
Fund investment strategy targeting portfolio companies at various stages of development; sometimes referred to as Balanced-Stage.



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