Glossary Category: P

Sale of bonds to select qualified investors, in a private process, avoiding a wide and publicly announced marketing process. For high yield bonds, this is

A leveraged buyout of a company which has never been owned by a private equity sponsor previously. See also: Secondary Buyout

Instrument which allows the issuer or borrower to choose between paying interest in cash, or in kind (PIK) at each interest payment date. Typically the

Interest mechanic whereby the interest due is not payable in cash to the lender, instead it is capitalized and added to the principal amount of

Interest mechanic whereby the issuer or borrower can determine (based on a pre-agreed and documented formula), at each interest payment date whether they are able

Private credit, also known as direct lending, involves non-bank financial institutions providing loans to businesses, typically small and mid-sized enterprises that may not have access

An asset class in which capital is invested in private companies in exchange for equity or ownership. Private companies are not publicly traded or listed