Alternative Investment Features, Methods, Structures Flashcards
What is “Private Capital”?
Funding provided to companies that is not sourced from public markets.
What is “Private Equity”?
Equity investment capital raised from sources other than public markets and traditional institutions.
What is “Private Debt”?
Capital extended to companies through a loan or other form of debt.
What are “Real Assets”?
Generally, these are tangible physical assets, such as real estate, infrastructure, and natural resources, but they also include intangibles such as patents, intellectual property, and goodwill. Real assets help generate current or expected future cash flows and are considered a store of value.
What is “Real Estate”?
Includes borrowed or ownership capital in buildings or land.
What is “Infrastructure” ?
A type of real asset that is intended for public use and provides essential services. These assets are typically long-lived fixed assets such as bridges and toll roads.
What is a PPP (Public-Private Partnership)?
An agreement between the public sector and the private sector to finance, build, and operate public infrastructure such as hospitals and toll roads.
What is a “Concession Agreement”?
A legal agreement in infrastructure investing that governs the investor’s obligations to construct and maintain infrastructure as well as the exclusive right to operate and earn fees for a pre-determined period.
What are “Natural Resources”?
materials from the earth that include commodities (hard and soft), agricultural land (farmland), and timberland.
What are “commodities”?
A product or service from a firm that is indistinguishable from products or services of competing firms, usually conforming to a common standard or grade imposed by a convention or regulation.
What are “Digital Assets”?
The umbrella term covering assets that can be created, stored, and transmitted electronically and have associated ownership or usage rights.
Includes cryptocurrencies, tokens, and digital collectables.
What is a “Fund of Funds”?
Funds that hold a portfolio of hedge funds; also called funds of hedge funds.
In __________ ___________ (two words), the investor invests in assets indirectly by contributing capital to a fund as part of a group of investors.
Fund Investing
What is “Co-investing”?
Investor invests in assets indirectly through the fund but also possesses rights (known as co-investment rights) to invest directly in the same assets.
Through co-investing, an investor is able to make an investment alongside a fund when the fund identifies a deal.
What is “Direct Investing”?
When an investor makes a direct investment in an asset without the use of an intermediary.
