Secondary Buyout
A secondary buyout (SBO) is a transaction where one private equity firm sells a portfolio company to another private equity firm, often occurring when the selling firm seeks to realize its investment returns within a set timeframe, and the buying firm sees further growth potential.
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Related Terms
View all termsSAFE (Simple Agreement for Future Equity)
A SAFE (Simple Agreement for Future Equity) is a financial instrument that allows startups to raise capital with the promise of issuing future equity, providing a straightforward and flexible alternative to traditional equity financing.
Seed Capital
Seed capital is the initial funding used to start a business, covering early expenses before the company can generate revenue.
Seed Funding
Seed funding is the initial capital used to start a business, often from personal assets or angel investors.
Series A, B, C Funding
Series A, B, and C funding rounds represent stages of startup financing that enable companies to scale operations, develop products, and expand market reach.
Sharpe Ratio
The Sharpe Ratio is a financial metric used to evaluate the risk-adjusted return of an investment portfolio.
Side Pocket
A side pocket is an investment tool used by hedge funds to segregate illiquid or hard-to-value assets from the main portfolio.
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