Investment Glossary

Alternative Investment Fund; a privately pooled vehicle regulated by SEBI in India.

Return attributable to skill or exposures beyond a chosen benchmark.

Sensitivity of an investment’s return to movements in a reference market.

A manager’s contractual share of eligible fund profits.

A contractual promise or restriction in a financing agreement.

Distributions to Paid-In Capital; realised cash returned divided by contributed capital.

A measure of a bond price’s sensitivity to interest-rate changes.

Earnings before interest, taxes, depreciation and amortisation.

General Partner; the entity responsible for managing a private fund.

Internal Rate of Return; an annualised measure based on dated cash flows.

Leveraged buyout; a control acquisition financed with sponsor equity and substantial debt.

Limited Partner; an investor that commits capital to a private fund.

Loan-to-Value; debt divided by an asset or portfolio’s assessed value.

Multiple on Invested Capital; total value divided by invested capital.

Net Asset Value; assets less liabilities, subject to the valuation policy used.

Payment-in-kind; interest or dividends added to principal rather than paid in cash.

Return on Invested Capital; operating profit relative to capital used by the business.

Residual Value to Paid-In Capital; remaining fund value divided by contributed capital.

Specialized Investment Fund; a differentiated strategy under India’s mutual-fund framework.

Total Value to Paid-In Capital; DPI plus RVPI.

A private loan combining senior and junior debt economics in one facility.