Glossary of terms
At PE Cube, we aim at offering more than a Private Equity software to our customers: we want to support you in every aspect of your daily activities.
In that sense, we share with you a Glossary on Private Equity terms.
You will find below all the relevant terms of the Private Equity industry, with their definitions, as provided by trusted sources (sources: Gips®, European Parliament, ESMA, ILPA, Invest Europe, Investopedia, and IPEV).
Terms by letter
PE CUBE Terms
There are currently 8 names in this directory beginning with the letter W.
W
Warrant
A type of security that entitles the holder to buy a proportionate amount of common stock or preferred stock at a specified price for a period of years. Warrants are usually issued together with a loan, a bond or preferred stock - and act as sweeteners, to enhance the marketability of the accompanying securities. They are also known as stock- purchase warrants and subscription warrants.
Source: ILPA
Source: ILPA
Weighted Average Anti-dilution
The investor's conversion price is reduced, and thus the number of common shares received on conversion increased, in the case of a down round; it takes into account both:
(a) the reduced price and, (b) how many shares (or rights) are issued in the dilutive financing. See Broad-Based Ratchet and Narrow-Based Ratchet definitions.
Source: ILPA
(a) the reduced price and, (b) how many shares (or rights) are issued in the dilutive financing. See Broad-Based Ratchet and Narrow-Based Ratchet definitions.
Source: ILPA
Williams Act of 1968
An amendment of the Securities and Exchange Act of 1934 that regulates tender offers and other takeover related actions such as larger share purchases.
Source: ILPA
Source: ILPA
Workout
A negotiated agreement between the debtors and its creditors outside the bankruptcy process.
Source: ILPA
Source: ILPA
Wrap fee
A type of bundled fee specific to a particular investment product. The wrap fee is charged by a wrap fee sponsor for investment management services and typically includes associated transaction costs that cannot be separately identified. Wrap fees can be all-inclusive, asset-based fees and may include a combination of investment management fees, transaction costs, custody fees, and/or administrative fees. A wrap fee portfolio is sometimes referred to as a “separately managed account” (SMA) or “managed account".
Source: GIPS
Source: GIPS
Write-off
ILPA: The act of changing the value of an asset to an expense or a loss. A write-off is used to reduce or eliminate the value an asset and reduce profits. The write-down of a portfolio asset to the value of zero, with the result that the private equity investor or investors go without proceeds upon disposition.
Invest Europe: "The value of the investment is eliminated and the return to investors is zero or negative."
Source: ILPA, Invest Europe
Invest Europe: "The value of the investment is eliminated and the return to investors is zero or negative."
Source: ILPA, Invest Europe
Write-up/Write-down
An upward or downward adjustment of the value of an asset for accounting and reporting purposes. These adjustments are estimates and tend to be subjective; although they are usually based on events affecting the investee company or its securities beneficially or detrimentally.
Source: ILPA
Source: ILPA
