DPI or Distribution to Paid-In capital
The Distribution to Paid-In ratio is used to measure a fund's performance. It is the ratio of capital actually returned by a fund to its investors.
DPI =Sum of distributions received by investors at time t divided by Paid-in Capital (the sum of capital calls at time t).
DPI does depend on actual cash flows, so it's a performance achieved net of expenses.
SFDR / Sustainable Finance Disclosure Regulation
Which came into force on March 10, 2021, it is a European regulation that aims to provide a framework for the integration of ESG (Environmental, Social and Governance) issues by financial players at several levels.
This new regulation aims to provide a framework for finance in an environmental and sustainable transition.
Venture Philanthropy
Applying Private Equity's support methods to the charitable world, Venture Philanthropy consists of selecting the best social actors and supporting them over the long term by providing them with the financing and skills support they need to scale up and relaunch the social ladder.
TVPI
TPI (Total Value to Paid In) is an indicator that measures the ratio between the amounts already paid to investors and the estimated value of the portfolio, divided by the total amount paid by investors.
If the IPST is greater than 1, it means that the fund is in a capital gains position. On the other hand, if the IPTV is less than 1, it indicates that the fund has not yet created value.
IPST is broken down into IPST = IPR + IPVR or Distributions Paid + Estimated Portfolio Value.
UNPRI
The Principles for Responsible Investment were launched by a group of institutional investors in response to the growing importance of environmental, social and governance issues. Sponsored by the UN, this initiative brings together nearly 5,000 financial institutions working together to implement its six ambitious principles for responsible investment. Altaroc Partners has been a PRI signatory since 2021.
PER
The Plan d'Epargne Retraite (PER) is a savings product designed to build up capital for retirement. It offers tax advantages, enabling savers to deduct their payments from their taxable income. The PER can be funded by voluntary contributions and compulsory contributions, and the accumulated savings are available on retirement in the form of an annuity or a lump sum, depending on the terms chosen.
Heritage
All property, assets and rights held by a person or entity. This can include real estate such as houses, land, buildings, movable property such as cars, works of art, collections, financial assets such as stocks, bonds, bank accounts, real estate investments, as well as rights such as contracts, patents, copyrights, etc. Wealth can be assessed in terms of financial value, but it can also have sentimental or historical value.
Multiple Net
The Net Multiple is an indicator that measures the return on an investment by comparing the amount of the exit (the proceeds from the sale of assets) with the amount of the initial investment. A Multiple of 2.65 means that the investment has generated a return of 2.65 times the initial amount invested.
Growth Equity / Capital Développement
An asset class in the field of Private Equity. It is for investments in fast-growing companies, typically with an annual growth rate of more than 30%. These businesses are often profitable, but not always. Growth Equity focuses on companies with a proven business model and the potential to accelerate their growth. Unlike Venture Capital, Growth Equity is not interested in start-ups or high-risk technology companies. Rather, it is intended to support established companies in their expansion and to assist in the execution of their growth plan.
DCF Method
(Discounted Cash Flow) A business valuation method that involves estimating the present value of future cash flows that the company will generate. It is based on the principle of discounting, which brings the value of future cash flows down to today's date. DCF valuation is considered an intrinsic method, as it is based on the company's ability to generate a cash flow.
AVL
Assurance Vie Luxembourgeoise refers to life insurance policies established in Luxembourg. These contracts are often chosen for the tax advantages and wealth management opportunities offered by Luxembourg legislation. They are prized for their flexibility, legal certainty and widespread use in estate planning.
AMF
The Autorité des marchés financiers (AMF) is an independent French institution responsible for regulating and overseeing the financial markets. Its main role is to ensure investor protection, market transparency and smooth operation. The AMF issues rules and recommendations, authorizes and monitors financial market players, and intervenes in the event of infringements to ensure the integrity of the financial system in France.
buyout / Capital Transmission
Leveraged Buyout is a financial operation in which a company is acquired using mainly debt. In an LBO, acquirers use leverage to finance the acquisition, using the target company's assets as collateral to secure a large loan. This enables acquirers to limit their initial outlay and benefit from financial leverage to increase the potential return on their investment. LBOs are generally used to acquire profitable companies with leading market positions and solid growth prospects.
FCPR
Like the FPCI, the FCPR allows you to invest in unlisted companies, in France and abroad, with at least 50% of its assets consisting of securities that are not admitted to trading on a market. But while the legislation limits access to FPCIs to professional or sophisticated investors, i.e. able to invest at least €100,000 in the fund, subscription to the units of an FCPR is open to all investors.
Another distinction lies in the fact that the creation of an FPCI only requires a declaration to the AMF: the FCPR can only be set up provided that the fund is approved by the AMF and that The asset management company itself has also been authorized. This authorisation implies compliance with certain management rules, in particular with regard to the level of commitment of the fund to a single company and the liquidity of the equity investments.
FPCI
The FPCI (Fonds Professionnel de Capital Investissement) is a Private Equity investment solution reserved for professional or informed investors, i.e. able to invest at least €100,000 in the fund.
Formerly called "FCPR with simplified procedure", the FPCI allows you to invest in unlisted companies, in France and abroad: its assets must be made up of at least 50% of securities that are not admitted to trading on a market. The FPCI is managed by a management company approved by the Autorité des Marchés Financiers (AMF).
ANR
The NAV (Net Asset Value) represents the total value of the fund's assets, minus its debts. It is therefore calculated by adding the fair value of the portfolio and the cash position of the fund, from which debts including carried interest debt are subtracted. The change in NAV over a given period comes from the value creation generated by the portfolio over that period, from which all expenses and the provision for carried interest are subtracted.
Capital call
A capital call is a request to investors to pay all or part of the capital they have committed to subscribing to the fund. The call is used to finance the acquisition of target companies and fund expenses. In the case ofAltaroc, given that the vintages are deferred calls, investors pay their capital - up to the limit of the commitment made at the time of subscription - in several successive calls.
