Investor Presentaiton
52
CONFIDENTIAL
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Glossary
LOI or Letter of Intent - A non-binding agreement issued by a buyer to a seller summarizing the key terms of a purchase offer
LP or Limited Partner - An investor in a private equity fund
J-Curve - The value development pattern in which the net asset value of a private-equity fund typically declines moderately during the early years of
the private-equity fund's life as investment related fees and expenses are incurred before investment gains have been realized. As the fund matures
and portfolio companies are sold, the pattern typically reverses with increasing net asset value and distributions.
Mezzanine - Mezzanine is a private equity industry term referring to subordinated debt investments made directly in operating companies. Investee
companies are often private-equity backed. Mezzanine debt is junior to most forms of debt and liabilities in the capital structure but is senior to all
forms of equity. In compensation for the risk profile, mezzanine debt generally requires a higher level of interest payment to the investor, typically in
some combination of cash and in-kind payments. Often, the mezzanine investor will also require equity warrants to be associated with the debt
security.
Other Infrastructure - Infrastructure is a private equity industry term that refers to investments made directly in infrastructure projects, such as
energy production plans, dams, pipelines, bridges, or other income producing facilities. These investments may be made in the form of equity, debt,
revenue or profit-sharing participations, or in some combination.
Other - Natural resources - Natural resources is a private equity industry term that refers to investments made directly in assets such as oil and gas
exploration and production, oil and gas distribution, or timber. These investments may be made in the form of equity, debt, revenue or profit-sharing
participations, or some combination.
Primary Investments - Primary investments (primaries) are interests or investments in newly established private equity funds. Primary investors
subscribe for interests during an initial fundraising period, and their capital commitments are then used to fund investments in several individual
operating companies (typically ten to thirty) during a defined investment period. The investments of the fund are usually unknown at the time of
commitment, and investors typically have little or no ability to influence the investments that are made during the fund's life.
Proprietary - Transactions originated via the FlowStone Opportunity Fund platform where a broker is not involved
Seasoned Primary - Similar to a Primary Investment; however, when the investor commits to the fund during the initial fundraising period, the newly
established fund has already completed a number of transactions. Importantly, there is still a relatively high amount of unfunded capital that will be
drawn down to make new platform investmentsView entire presentation