Equity warrant (BSA or Bon de Souscription d’Action)
A share with an equity warrant (ABSA or Actions assorties de Bons de Souscription) that gives the holder the right to purchase the issuer's stock at a specified price within a specified period of time. When the warrant is detached from the shares they are listed separately.
Expansion capital
Financing provided to further grow an unlisted company that has successfully completed an initial business development phase.
Carried interest
The portion of earnings and gains reverting to the management team of a private equity fund, with the balance being attributable to investors.
Due diligences
A thorough series of preliminary verifications and audits undertaken before proceeding with the acquisition of a company.
Eurolist
Eurolist was created by Euronext in 2005 to facilitate trading by merging the Paris, Amsterdam, Lisbon, and Brussels stock exchanges into a single list. Compartment A consists of companies with market capitalisations above €1 billion; Compartment B, between €1 billion and €150 million; and Compartment C, less than €150 million.
FCPR (Fonds Commun de Placement à Risque)
A FCPR or French regulated venture capital trust is a mutual fund or joint ownership of securities governed by articles L.214-36 et seq. of the French monetary and financial code and subject to special provisions under article 163 quinquies B of the French general tax code.
Late stage venture
Financing of young companies that have demonstrated their ability to generate revenue.
LBI (leveraged buy-in)
An LBO transaction (see definition below) in which the investors acquiring the company include managers from outside the company.
LBO (leveraged buy-out)
General term applied for all operations through which investors acquire an interest through a holding company, which is generally dedicated to the holding of this stake, and financed through bank loans to be paid back out of net cash flow (primarily dividends) generated in connection with this interest.
MBI (management buy in)
An LBO transaction (see definition below) in which the investors acquiring the company include managers from outside the company.
MBO (management buy out)
The takeover of a company (with or without leverage) by the management team in place.
Private equity
Activity involving investments in companies whose securities are not traded on a public market.
Turnaround
A situation where a company turns from losses to profitability, generally accompanied by raising equity or funding.
SCA (Société en Commandite par Actions)
A French limited partnership with shares with two distinct types of partners: a general partner with unlimited joint and several liability, and a limited partner whose liability is limited to its capital contribution.
SCR (Société de Capital Risque)
A venture capital firm which receives special tax treatment under French law when it invests exclusively in unlisted securities and complies with the relevant provisions of the Act 85-695 of 11 July 1985.
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glossary