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GAAP

Generally Accepted Accounting Principles. The common set of accounting principles, standards and procedures. GAAP is a combination of authoritative standards set by standard-setting bodies as well as accepted ways of doing accounting.

Gatekeeper

Specialist advisers who assist institutional investors in their private equity allocation decisions. Institutional investors with little experience of the asset class or those with limited resources often use them to help manage their private equity allocation. Gatekeepers usually offer tailored services according to their clients’ needs, including private equity fund sourcing and due diligence through [...]

GDR’s

Global Depositary Receipt (GDR’s). Receipts for shares in a foreign based corporation traded in capital markets around the world. While ADR’s permit foreign corporations to offer shares to American citizens, GDR’s allow companies in Europe, Asia and the US to offer shares in many markets around the world.

General Partner (GP)

The managing partner in a private equity management company who has unlimited personal liability for the debts and obligations of the limited partnership and the right to participate in its management. The General Partner is the intermediary between investors with capital and businesses seeking capital to grow.
See: Limited Partnership.

General Partner Clawback

This is a common term of the private equity agreement. To the extent that the general partner receives more than its fair share of profits, as determined by the carried interest, the general partner clawback holds the individual partners responsible for paying back the limited partners what they are owed.

General Partner Contribution

The amount of capital that the fund manager contributes to its own fund in the same way that a limited partner does. This is an important way in which limited partners can ensure that their interests are aligned with those of the general partner. While the U.S. Department of Treasury has removed the legal requirement [...]

Golden Handcuffs

This occurs when an employee is required to relinquish unvested stock when terminating his employment contract early.

Golden Parachute

Employment contract of upper management that provides a large payout upon the occurrence of certain control transactions, such as a certain percentage share purchase by an outside entity or when there is a tender offer for a certain percentage of a company’s shares. Discussed in more detail at The Executive Employment Agreement.

Government Fund

A government-owned private equity fund, usually organized through a federal or provincial agency or crown corporation.

Gross IRR

The IRR based upon the performance of the investments, not taking into account management fees or carried interest.

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