Private Equity & Family Office Definitions

Private capital is an investment made in a business as a private debt or private equity.

Private equity is an investment of capital in a private company not listed on a public exchange.

Venture capital is a form of private equity capital for early-stage companies.

Private debt refers to debt investments which are not financed by banks and are not issued or traded in an open market.

Angel investors are high net-worth individuals who provide financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.

Investees are the business entities into which a private equity investment is made. Potential investees may be clients seeking to orchestrate an exit (sell their company) or desiring an infusion of capital (grow and expand).

Family enterprises are economic ventures in which two or more members of a family have an interest in ownership (owners) and a commitment to the continuation of the enterprises.

Family office refers to the “ecosystem” that a family builds around itself to get organized, manage its assets and enable its members to enjoy their lifestyles. Family office is a dedicated solution for the complex management of the family wealth, and a vehicle that supports the family in the day-to-day administration and management of the family’s affairs and long-term strategy.

High net-worth individuals are individuals with a net worth of at least $1 million in highly liquid assets, such as cash and cash equivalents.

Philanthropy and charitable giving, in the context of a family office, involves determining principles to strategically guide charitable giving in a way that reflects the family’s values, beliefs and desired legacy.

White label refers to a product or service created or supported by one company that is re-branded and sold using a different name.