This Industry Glossary is to help you make sense of the Finance Industry terminology. Like any other, there is an industry shorthand. We have listed below some of the most common terms and their definition.
|Alternative Investment Fund Manager, the manager of an Alternative Investment Fund (such as a private equity fund or a venture capital fund) under the EU Alternative Investment Fund Managers Directive
|Anti-money laundering, which means the process of establishing the credentials of a person to establish that the person is not engaged in money laundering
|UK Business Investment Relief
|UK Business Property Relief
|Common Reporting Standard (which is the global non-US equivalent of FATCA)
|Custody is the safekeeping of assets belonging to another, a service provided by Mainspring Nominees Limited
|The approach adopted by a company in relation to Environmental, Social and corporate Governance issues
|The US legislation, the Foreign Account Tax Compliance Act, enacted to prevent tax evasion by a US person who invests outside the US
|A general partner (or the manager) of a limited partnership, which is being used as a fund structure
|UK inheritance tax, payable upon the value of assets held by an individual at death which are left to others
|The internal rate of return calculated on an investment
|The “know your customer” regulations
|A limited liability partnership
|A limited partner of (or an investor in) a limited partnership, which is being used as a fund structure
|Net asset value, so the figure calculated by valuing assets and deducting any liabilities relating thereto
|A legal entity that holds assets on behalf of the beneficial owner of those assets, such as a bare trust nominee company as owned by Mainspring Nominees Limited
|Private Equity (PE)
|Private Equity is the process by which investments are made in private (so not publicly listed) companies, which have an established business. Typically, this can take the shape of development capital, with the new money used to help a portfolio company grow, or through a leveraged purchase of a company (meaning debt is used to help buy the company, akin to how a mortgage is used to help to buy a house).
|A special purpose vehicle, usually established to acquire a particular investment(s)
|A third-party administrator of assets, such as Mainspring Fund Services
|Venture Capital (VC)
|Venture Capital is the process by which investments are made in private (so not publicly listed) companies that are at an early stage in their development. Typically, this will be new money coming into a portfolio company to assist with growing it.