For Family Offices and Alternative Investors

Terminology Part One – Valuation and Returns

We cover valuation and returns terminology, how it is used, why it matters, and the primary issues, which ensures quality conversation for family offices and alternative investor


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Terminology Valuation and Returns For Family Office Investors

Finance terminology loses meaning over time; the investment team speaks the language so fluently, that foundational concepts aren’t revisited by family office and alternative investors

A refresher on core investment terminology, along with drawbacks, can help ground conversations, and ensure no context is lost or information misinterpreted

When the entire team is aligned on finance terminology, the quality of the discussion improves when evaluating merits of new investments or troubleshooting problems with existing portfolio companies for family offices and alternative investors

In our white paper, we discuss enterprise value, NOPAT, EBITDA multiples, equity value, PE multiples, market price, optimal exit year, IRR, TVPI, DPI, RVPI, MOIC, market price, intrinsic value, pre-money valuation, post-money valuation, diluted ownership …among other metrics relevant to investment valuation and returns utilized across private equity, public equity, and by limited partners