Funds Glossary

Browse 15 funds terms defined in plain English, from the cultural dictionary of computing.

15 Funds Terms

AUM
Assets under management, meaning the total market value of assets a fund, advisor, or financial platform manages on behalf of clients or investors. It is a key...
Capital Call
A request from a fund to its limited partners to provide committed capital so the fund can make investments or cover obligations. Founders encounter the term...
Carried Interest
The share of a fund's investment profits paid to its managers after returning capital and typically clearing a hurdle structure. In venture, carry is a major...
Co-Investment
An investment made alongside a lead fund or main financing vehicle into the same deal, often by existing backers, LPs, or strategic participants. It allows...
Evergreen Fund
An investment fund without a fixed end date, allowing capital to stay deployed and recycled over longer periods instead of following a standard fund lifecycle....
Fund of Funds
An investment fund that invests in other funds rather than directly into operating companies. In venture ecosystems, fund of funds capital often sits behind...
Fund Size
The total capital committed to an investment fund. Fund size matters because it influences check size, portfolio construction, follow-on capacity, and return...
Generalist VC
A venture investor or firm that invests across many sectors instead of specializing deeply in a single domain. Generalist VCs often compete on judgment,...
General Partner
A senior manager of an investment fund who makes decisions on behalf of the fund and is responsible for deploying capital and managing the portfolio. In...
Hold Period
The length of time an investor expects to hold an investment before exit or liquidity. Hold periods matter because different capital sources tolerate different...
Limited Partner
An investor in a fund who provides capital but does not manage the fund's day-to-day investment decisions. Limited partners sit behind venture firms as the...
LP
Short for limited partner, meaning an investor who supplies capital to a fund without managing its day-to-day investments. LPs are the ultimate backers behind...
Management Fee
The fee paid by investors to fund managers to cover operating costs of managing the fund, typically expressed as a percentage of committed or invested capital....
Micro VC
A small venture capital fund, usually focused on seed or pre-seed investing with smaller check sizes than large traditional firms. Micro VCs often compete on...
VC Fund
A pooled investment vehicle that deploys capital into startups in exchange for ownership, usually with a portfolio approach and a defined investment strategy....

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