“FUND” AMENTALS
Funds that fund funds
What are FUND OF FUNDS
A catch all term for debt assets
What is CREDIT
Assets not traded "under" the supervision of an exchange, are instead traded "over" this
What is THE COUNTER (OTC)
The SEC is to the USA
As the ___ is to the UK
What is the FCA
The period when most of the gains from the PE's investments are typically made.
What is the HARVEST PERIOD / EXIT PERIOD
A fund that has a fixed number of shares; Investors are “locked-in” for the term
What are CLOSED ENDED funds
Large corporate loans usually spread among multiple banks or lenders
What are [BROADLY] SYNDICATED LOANS
Loans sit "above" the Mezzanine, but "below" the Revolver, on one of these
What is a CAPITAL STRUCTURE
TLA is to TLB
as IG is to ____
What is HYB
(Also can accept DISTRESSED / JUNK / SPECIAL SITS)
You don't need a telephone, but you will need good fund accounting, to conduct one of these with your LPs
What is a CAPITAL CALL
A type of early stage fund common in Silicon Valley
What is VENTURE CAPITAL
Insurance against default of a reference asset
What are CREDIT DEFAULT SWAPS
When a debt or credit asset trades at a substantial discount to par, it is usually considered this
What is DISTRESSED / SPECIAL SITUATIONS
LPs are to GPs
As ____ are to CLOs
What are NOTE HOLDERS / BOND HOLDERS
Your LP may "fire" you if you have too much of this lying around during the life of the fund.
What is DRY POWDER
Another name for funds that lend directly to small & medium enterprises
What is PRIVATE DEBT or DIRECT LENDING (accept either answer)
Over sized and under construction
What is INFRASTRUCTURE or PROJECT FINANCE
***DAILY DOUBLE***
Total debt, Net debt and other leverage ratios use this as the denominator
What is EBITDA
TV is to PI
As XI is to ___
What is RR
Timing is everything - especially with this, which allows GPs to start deploying capital once it happens.
What is FIRST CLOSE
*** DAILY DOUBLE ***
Australian pension funds, which have been active investors in infrastructure and private debt GPs.
What are SUPER ANNUATION funds
A type of fund financing facility which is based on undrawn commitments from the fund's investors.
What is SUB LINES or SUBSCRIPTION LINES
Howard Marks wrote the following about this cap markets concept: “It’s not about whether you can sell it, it’s whether you can sell it at or close to the last price.”
What is LIQUIDITY
Baa2 is to BBB
As Caa2 is to ____
What is CCC
Reporting IRR on the QPR is the main job of ____
What is IR (INVESTOR RELATIONS)