Home
 
Public Site > Research > Private Equity Glossary

Glossary

Showing 1-7 of 7.

Browse By Letter

#   A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   Y   

 

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 [...]

Wash-Out Round

A financing round whereby previous investors, the founders, and management suffer significant dilution. Usually as a result of a washout round, the new investor gains majority ownership and control of the company. Also known as burn-out or cram-down rounds.

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.

Williams Act of 1968

An amendment of the Securities and Exchange Act of 1934 that regulates tenderĀ  offers and other takeover related actions such as larger share purchases.

Workout

A negotiated agreement between the debtors and its creditors outside the bankruptcy process.

Write-off

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 [...]

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.

Public Site > Research > Private Equity Glossary
Legal
Media
Phone: 416-941-9393
Fax: 416-941-9307
Email: info@ilpa.org
Institutional Limited Partners Association
1200 – 55 York Street,
Toronto, ON Canada
M5J 1R7