Drag-Along Rights are provisions that enable majority shareholders to compel minority shareholders to join in the sale of a company, ensuring the transaction proceeds smoothly without being blocked by minority stakeholders.
A performance fee is a payment made to an asset manager for generating positive returns on an investment portfolio, often structured as a percentage of the profits above a set benchmark, aligning the manager's interests with those of the investor.
A down round occurs when a company raises capital at a valuation lower than its previous funding round, often signaling diminished investor confidence or a challenging market environment.
