Altamir - Registration Document 2016

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SUPPLEMENTARY INFORMATION 5 Glossary
INVEST EUROPE (EX EVCA)
European professional association of investors in private equity, venture capital and infrastructure ).
INVESTMENT MULTIPLE
Measures the performance of invested capital but unlike IRR does not include a time factor and therefore complements IRR very well
in evaluating the quality of performance realised by the equity investors.
IPO (INITIAL PUBLIC OFFERING)
An IPO is a financial transaction in which a company’s shares are admitted to trading on a stock market. This public equity offering
allows a company to raise capital, increase its profile, and tap the financial markets if necessary.
LBO (LEVERAGED BUYOUT)
Acquisition of a company by equity investors and the executives of the acquired company. The financingpackage comprises a relatively
large proportion of debt (leverage), which is to be repaid with future cash flows.
LEVERAGE
Multiplier effect on the return on equity resulting from the use of external financing.
LIMITED PARTNERSHIP (LP)
A tax-transparent investment structure, mainly usedbyAnglo-Saxonmanagers, andwhichgenerally has a 10-year life. The LP ismanaged
by an independent management company, the General Partner (GP). Its investors are Limited Partners (LPs) who have limited liability.
They are not involved in the day-to-day management of the funds but regularly receive detailed reports on the fund’s investments.
LTM
Last 12 months. Used to describe a financial indicator specifically focused on that period.
MANAGEMENT FEES
Annual fees paid to the fund manager to cover the operating and administrative costs of the fund, typically a percentage of the
committed amount of the fund.
NAV PER SHARE
NAV per share is the value of one ordinary share of the company’s shareholder’s equity, calculated in accordance with IFRS for
consolidated financial statements. It is calculated by dividing the company’s shareholder’s equity by the total number of ordinary
shares outstanding. NAV per share is stated net of the amount attributable to the general partner and to the holders of Class B shares,
as well as the carried interest provisions for the funds in which the company invests.
NAV TR (TOTAL RETURN)
NAV Total Return (NAV TR) measures the performance of NAV including dividends. It is calculated assuming that the dividend paid
is reinvested in the company.
NET ASSET VALUE (NAV)
Net Asset Value is the most relevant financial indicator for reviewing the company’s business activity. It corresponds to shareholder’s
equity, calculated in accordance with IFRS for consolidated financial statements, i.e. the total value of assets less liabilities. It is
calculated by valuing investments based on International Private Equity Valuation (IPEV) guidelines. NAV includes unrealised capital
gains and losses.
ORDINARY SHARES
Shares conferring the same rights (voting, preferential subscription, dividends, etc.) to all holders, in proportion to the amount of
equity held.
PRIVATE EQUITY
Acquiring an ownership interest in companies that are generally not listed. Private equity provides vital support for an unlisted company
throughout its existence. It finances the start-up (venture capital), growth (growth capital), and acquisition/LBO phases in the life of
the company.
PRIVATE EQUITY
Acquiring an ownership interest in companies that are generally not listed. Private equity provides vital support for an unlisted company
throughout its existence. It finances the start-up (venture capital), growth (growth capital), or acquisition/LBOphases of the company.
178 REGISTRATION DOCUMENT 1 ALTAMIR 2016