Altamir - Registration Document 2016

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SUPPLEMENTARY INFORMATION 5 Glossary
5.6 GLOSSARY
AFIC
AFIC (Association Française des Investisseurs pour la Croissance), established in 1984, is a professional association that includes nearly
all private equity investors in France. Its mission is to promote and develop private equity investment by federating all the players in
the marketplace .
BUILD-UP
Acquisition financed usually with debt, carried out by a company taken over through an LBO. It is intended to create a larger, more
profitable group by creating synergies, and one with a higher valuation for its shareholders when it is subsequently sold.
BUSINESS PLAN
The company’s strategic development plan for three to five years, with a detailed action plan for marketing, competition, products,
techniques, production methods, investments, manpower, IT, financing, etc.
BUYOUT FUND
A private equity fund that acquires majority interests in established companies.
CARRIED INTEREST
Share of profit fromperformance returned to the fundmanagement company, calculated on the basis of a private equity fund’s income
and capital gains (usually 20%).
In Altamir’s case, carried interest is equal to 20% of net gains as per the Articles of Association, allocated as follows: 2% to the general
partner, and 18% to the Class B shareholders, who are the members of the management team. Since Altamir’s inception, carried
interest has been calculated based on adjusted statutory net income. This result includes realised capital gains and unrealised capital
losses (impairment of securities) but does not include unrealised capital gains, contrary to IFRS income, which is used to determine
Net Asset Value (NAV).
CLASS B SHARES
Class B shares are preferred shares allocated to members of the Apax fund management team which entitle the holder to a share in
the company’s performance, called carried interest.
CLOSING
Final step of a transaction, with the signing by all participants (company officers and financial investors) of the legal documentation
(including any shareholders’ agreements) and disbursement of funds.
CO-INVESTMENT
Direct investment in a company along with a private equity fund, with equivalent pricing, conditions and rights.
DEBT MULTIPLE
Ratio of a company’s debt to its EBITDA.
DISCOUNT
Shares of listed private equity companies often trade with a discount to NAV, i.e. at a share price less than the NAV per share. The
discount is the difference between the market price and NAV per share, expressed as a percentage of NAV.
DIVIDENDS
The dividend is the remuneration paid to shareholders in exchange for their investment in the company’s equity. It is the portion of
distributable income that, based on the recommendation of the Supervisory Board and approval by shareholders, is paid to each
shareholder.
DUE DILIGENCE
All measures taken in the analysis and review of information that allow the equity investor to make a judgement about the business,
financial condition, income, growth prospects and organisation of the company being considered for acquisition.
176 REGISTRATION DOCUMENT 1 ALTAMIR 2016