Plain-English definitions of the corporate finance, debt, real estate finance, M&A, fund placement and private-markets terms used in capital advisory transactions.
Private credit is lending provided by non-bank institutions such as specialist debt funds, family offices and …
Project finance is the funding of a specific asset or project where lenders look primarily to the project&rsqu…
The capital stack is the full set of capital used to fund a business or project, ranked by priority of repayme…
The debt service coverage ratio measures whether an asset or business generates enough cash flow to meet its d…
Loan to value expresses the size of a loan as a percentage of the value of the asset securing it. For example,…
Senior secured debt is the most senior layer of borrowing, repaid first and backed by a security package over …
Mezzanine debt sits between senior debt and equity in the capital stack. It is subordinated to senior lenders,…
Preferred equity is an ownership interest that ranks ahead of common equity for distributions and on a wind-up…
An escrow account is a regulated account holding funds under defined release conditions, controlled by a neutr…
A term sheet is a short, usually non-binding document setting out the key commercial terms of a proposed finan…
A security package is the set of collateral and rights a lender takes to protect a loan — for example mo…
A covenant is a contractual promise in a loan agreement. Affirmative covenants require actions (such as provid…
Bridge finance is short-term funding used to cover a gap until a longer-term or permanent solution is in place…
Refinancing replaces existing debt with new debt, usually to lower cost, extend maturity, release equity, or c…
Sell-side M&A is the advisory process of selling a company or asset on behalf of its owners. It covers pre…
Buy-side M&A is advisory to a company or investor acquiring a business or asset. It covers target identifi…
A non-disclosure agreement is a contract under which parties agree to keep shared information confidential and…
A data room is a secure, organised repository of documents shared with prospective investors, lenders or buyer…
Fund placement is the process of helping a fund manager (the GP) raise capital from institutional and private …
A limited partner is an investor that commits capital to a fund but does not manage it, with liability limited…
A general partner is the manager of a fund, responsible for strategy, sourcing, investing, managing the portfo…
US pre-IPO secondaries are private transactions in shares or economic interests of late-stage US companies tha…
Acquisition finance is debt or other capital raised specifically to fund the purchase of a company, business o…
Structured capital is funding designed around the specific needs of a business or transaction rather than a st…
A letter of intent is a document in which a prospective buyer or investor sets out the key terms on which it p…
A share purchase agreement is the binding legal contract for the sale of a company’s shares. It sets out…
A teaser is a short, anonymous summary of a business or asset being offered for sale or investment, typically …
An information memorandum is the detailed confidential document describing a business or asset offered for sal…
An anchor investor is the first significant investor to commit to a fundraise, fund or transaction, usually ta…
Business valuation is the process of estimating what a company or business is worth. Common approaches include…
A capitalisation table is a record of who owns a company and in what form — ordinary shares, preferred s…
Due diligence is the structured investigation of a business or asset before a transaction completes, covering …
Presales are off-plan sales of units in a development before construction completes, with buyers paying in ins…
Payment-in-kind (PIK) interest is interest that is not paid in cash as it falls due but instead accrues and is…
A development finance institution (DFI) is a specialist lender and investor backed by a national government or…
A club deal is a financing or investment provided jointly by a small group of lenders or investors, each commi…
Unitranche is a single loan facility that blends what would otherwise be separate senior and subordinated tran…
A sponsor is the party that originates, leads and stands behind a transaction or project — typically a p…
Take-out financing is longer-term, usually lower-cost debt arranged to repay — or ‘take out’…
Recapitalisation is a deliberate restructuring of a company’s mix of debt and equity — for example…
Side-by-side comparisons of funding routes, and practical preparation checklists.
Speak to a partner about a corporate finance, debt, equity, M&A or real estate mandate.
