If another shareholder sells his shareholding, the venture capitalist can insist that his shares are sold on the same terms to the same purchaser.
Compare bring-along rights.
Glossário
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Tag-along Rights
If another shareholder sells his shareholding, the venture capitalist can insist that his shares are sold on the same terms to the same purchaser.
Compare bring-along rights.
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Takedown schedule
The plan stated in a private equity fund’s memorandum to provide for the actual transfer of funds from the limited partners to the general partner’s control.
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Target company
The company that the offeror is considering investing in. In the context of a public-to-private dealthis company will be the listed company that an offeror is considering investing in with the objective of bringing the company back into private ownership.
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Tax transparency
A fund structure or vehicle is tax transparent when the fund itself is not liable to taxation and the investment in an underlying company is treated as if it would be a direct investment for the initial investor (the LP), who is taxed only when the investment structure distributes its gains and revenues.
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Teaser
A short company presentation sent to potential investors before a sale or auction.
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Technical reserves
Technical reserves refer to the capital that insurance companies set aside to cover possible claims.
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Term Sheet
A short document summarising the principal financial and other terms of a proposed investment. It is usually non-binding, but may impose some legal obligations on the investor and the company.
Compare Letter of Intent.
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Terms and conditions
The financial and management conditions under which private equity limited partnerships are structured.
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Third stage/round
Funds provided for the major expansion of a company whose sales volume is increasing and which is breaking even or profitable.
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Times money earned ratio (TME)
Equivalent to the distributed to paid in ratio (D/PI ratio), measuring is defined as the sum of distributions and the most recent valuation of a given investment, divided by the sum of capital invested.
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TMT
Abbreviation for Technology, Media and Telecommunications sectors.
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Top Quarter
Comprises funds with an IRR equal to or above the upper quartile point.
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Total value to paid-in (TV/PI)
A realisation ratio which is the sum of distributions to paid-in capital (D/PI) and residual value to paid-in capital (RV/PI). TV/PI is net of fees and carried interest.
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Track record
A private equity management house’s experience, history and past performance.
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Trade sale
The sale of company shares to industrial investors.
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Trade secret
Information, such as a formula, pattern, device, or process, that is not known to the public and which gives the person possessing the information a competitive advantage. May sometimes include customer lists, marketing and/or business plans, and suppliers.
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Turkey
An offering of securities that performed poorly.
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Turnaround
See rescue.
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TVPI - Total Value to Paid-In
TVPI is the sum of the DPI and the RVPI.TVPI is net of fees and carried interest.