Credit rating agency is a company that assigns credit ratings for issuers of certain types of debt obligations as well as the debt instruments themselves.

Credit risk is the probability of a financial loss resulting from a borrower's failure to repay a loan.

Crowdfunding is the process of financing a business venture, product, idea, or property using funds pooled from a large number of potential investors.

Currency hedging is a strategy used to eliminate or minimize the risk of currency fluctuations affecting the value of investment returns.

Currency risk refers to the potential for financial loss due to fluctuations in the exchange rate between two currencies. This affects the value of foreign investments, the cost of imports and exports, and the overall financial performance of a company.

A financial ratio used to evaluate the income generated by an investment, primarily bonds or fixed-income securities. It is calculated by dividing the annual interest or dividend income earned from the investment by its current market price.

Customer/ client due diligence is the process where financial institutions and other regulated companies must verify the identity of their clients to prevent business relationships with those involved in money laundering or other financial crimes.

Debt is the money owed on financial instruments that were borrowed from a financial lender or institution with the expectation of being repaid.

The debt service coverage ratio is the ratio of cash available for debt servicing to interest, principal and lease payments.

The debt to equity ratio is a leverage ratio that calculates the weight of total debt against total shareholders' equity.

A deed where the legal title to the property is transferred to a trustee which holds it as security for a loan between a borrower and a lender.

Default is the outcome that occurs when a borrower fails to meet the legal obligations of a debt contract, specifically regarding repayment.

Defensive assets are investments that are expected to hold their value, and possibly even profit, during market downturns.

Depreciation recapture is a tax provision in the United States requiring taxpayers to pay taxes on gains from the sale of assets for which they previously claimed depreciation deductions to reduce taxable income. When such assets are sold at a profit, taxpayers must report and pay taxes on a portion of the gain that represents the previously claimed depreciation. For real estate under Section 1250, the maximum tax rate for depreciation recapture is generally capped at 25%. However, this rate can vary for other depreciable assets.

A digital currency exchange is a marketplace which allows for the purchasing, exchanging and selling of electronic currency as a legal tender.

Disbursement is the delivery of money from a fund, made as a payment in cash during a specific time period. It shows how the business is spending cash over time.

Distressed debt is the securities of companies or government entities that are experiencing financial or operational distress, default, or are under bankruptcy.

The distribution to paid-in capital metric measures the realized profits that have been distributed by the fund back to their limited partners. It can be calculated through the equation: Distribution to Paid-In Capital (DPI) = Cumulative Distributions / Paid-In Capital

A distribution refers to the disbursement of profits or income generated by an investment among its investors. Distributions can include dividends, interest, capital gains, or other income generated by the investment entity, which are allocated and paid out periodically to its shareholders.

A distribution waterfall is the order in which gains from a pooled investment are allocated between investors in the pool. The distribution waterfall typically consists of tiers or levels, each specifying how profits are distributed among different classes of investors or stakeholders. These tiers often include preferential returns, hurdle rates, or preferred returns that determine the distribution priority.

Diversification is a commonly used investment strategy, understood as the mixture of a variety of investments within an investment portfolio.

The Dodd-Frank Act targeted financial system sectors that were believed to have caused the 2007-2008 financial crisis, and is a legislation that seeks to make the U.S. financial system safer for consumers and taxpayers.

A double net lease is a rental agreement, usually in commercial tenancies, whereby the tenant agrees to cover the costs of two of the three primary property expenses: taxes, utilities, or insurance premiums.

Due diligence is a process involving an extensive economic, legal, fiscal and financial check. It occurs to analyse and mitigate risk from a business or investment decision.

Bond duration is a measure of the average time it takes to receive the bond's cash flows, considering both coupon payments and the return of principal, weighted by their present values.

ESG certifications provide an independent, objective assessment of a property's environmental, social and economic sustainability.

An ESG fund is an investment fund that selects companies for inclusion based on ESG criteria, aiming to generate long-term competitive financial returns and positive societal impact.

Earnings per share is a company's net profit divided by the number of common shares it has outstanding. It is an indication of how much money a company makes for each share of its stock.

Elective professional clients are clients who have the choice to be categorised as an elective client in accordance with COBS 3.5 professional clients specification.

An emerging market economy is an economy that's transitioning into a developed economy. Emerging market economies typically feature a unified currency, stock market, and banking system; they're in the process of industrializing.

Investments in emerging technologies target novel and innovative technologies that are nearing commercialization but haven't gained widespread adoption yet, demonstrating substantial growth potential.

Encumbrance is any claim on a property, such as a mortgage, that may affect the transferability of the property or reduce its value.

Enhanced due diligence is the set of additional measures that financial institutions have to implement to check and monitor high-risk customers and unusual transactions for potential money laundering activities.

The enterprise investment scheme is a UK government scheme that helps smaller, higher-risk companies raise finance by offering tax reliefs to investors who purchase new shares in those companies.

ESG frameworks represent the 3 main topic areas that companies are expected to report in. The goal of ESG is to capture all the non-financial risks and opportunities inherent to a company's day to day activities.

In private equity, subsequent investors might join the fund at varying periods, with differing terms or prices compared to the initial investors. An equalization payment is used to ensure fairness by reconciling these discrepancies among investors, especially concerning differences in costs or performance-related terms. This payment aims to equalize the economic position or treatment of all investors within the fund.

Equity is the portion of the company's value that belongs to its shareholders, encompassing rights to profits, voting privileges, and residual claims on assets after settling debts and liabilities. There are two types of equity: common equity and preferred equity.

Equity multiple is defined as the total cash distributions received from an investment, divided by the total equity invested.

Escrow is an agreement between two or more parties for an asset to be held by a third party (escrow agent) on behalf of two other parties that are in the process of completing a transaction.

EURIBOR is the average interest rate at which a large panel of European banks borrow funds from one another. It's calculated daily and serves as a reference rate for euro-denominated loans and financial products in the interbank market within the Eurozone.

The European Central Bank is the central bank of the 19 EU countries that have so far adopted the Euro.

An independent EU authority that regulates securities markets and oversees the financial industry to ensure investor protection, stable financial markets, and integrity in the EU's financial system.

The group of countries within the EU that have adopted the euro as their official currency. These countries use the euro for their financial transactions, trade, and monetary policy.

An exit charge is a fee which may be charged when an investor sells shares or units in a fund.

Fair trade is a trading partnership which seeks to follow sustainable development goals by ensuring that producers in developing countries are provided sustainable and equitable trade relationships.

Shariah compliance certificate issued by Islamic scholars or Shariah advisors certifying that a financial product, service, or transaction complies with Islamic principles and is therefore permissible (halal) according to Islamic law (Shariah).

The federal funds rate is the target interest rate range set by the FOMC and is the rate at which commercial banks borrow and lend their excess reserves to each other overnight.

The Federal Reserve Board are a group of officials who control the U.S. government's central banking system.

The Federal Reserve System is the central bank and monetary authority of the United States. The Fed works to provide the country with a safe, flexible, and stable monetary and financial system.

Federal tax refers to the taxes imposed by the national government in a country, such as the United States. In the U.S., federal taxes are collected by the Internal Revenue Service (IRS) and contribute to funding various federal programs and services.

A feeder fund is an investment vehicle, often a limited partnership, that pools capital commitments of investors and invests such capital into an umbrella fund, or master fund, which directs and oversees all investments held in the portfolio.

A final closing represents the culmination or conclusion of the fundraising process for a particular investment vehicle. It occurs when the fund managers have secured the targeted amount of capital commitments from investors, and the fund is officially closed to new investors.

A financial advisor is someone who has strong expertise and knowledge of finance and the general economic market. Financial advisors generally create financial plans for their clients to aid them in achieving their financial objectives, and consult regularly with clients to evaluate and adjust their financial plans.

The Financial Conduct Authority is a financial regulatory body in the United Kingdom which operates independently of the UK Government and is financed by charging fees to members of the financial services industry.

Financial leverage is the utilisation of borrowed funds (debt) rather than equity in the purchase of an asset. The usage of financial leverage comes with the assumption that after-tax income and capital gain generated from the asset to equity holders exceed the borrowing cost of debt.

Fintech refers to new technology that seeks to improve and automate the delivery and use of financial services in order to help companies and consumers better manage financial operations.

Islamic jurisprudence or Islamic law. It involves the understanding, interpretation, and application of rules and principles derived from Islamic sources, such as the Quran, Hadith, consensus (Ijma), and analogical reasoning (Qiyas).

The first closing refers to the initial phase of the fundraising process. During the first closing, the fund is officially launched, and initial investors commit capital to the fund based on the terms outlined in the offering documents. This capital may not be immediately called upon by the fund managers but signals the commencement of the fund's operation.

Fiscal policy is the use of government spending and taxation to influence the economy, promoting strong growth to reduce poverty and recessions.

Floor area ratio is the ratio of a building’s total floor area to the size of the lot on which it is built. The ratio is determined by dividing the total or gross floor area of the building by the gross area of the lot.

Foreclosure is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.

Free cash flow is a financial metric used to measure a company's financial performance and its ability to generate cash from its operations after accounting for capital expenditures (Capex) necessary to maintain or expand its asset base.

Freehold property refers to the indefinite ownership of both the property and land that the property it is on.

An investment vehicle where pooled money from multiple investors is professionally managed and invested in various securities or assets.

A fund life cycle is the total stages a fund goes through from its formation, growth, maturity and decline.

The process of raising capital or funds from various sources, such as investors, institutions, or individuals, to finance specific projects, ventures, or investment vehicles.

A fund of funds is a pooled investment fund that invests in other types of funds.

The financial commitment made by the general partner (GP) of a fund to invest its own capital alongside limited partners. Limited partners expect the GPs to have “skin in the game” by committing some of their own money into the fund that they are raising.

The managing partner or entity responsible for the operation and management of a partnership, typically holding decision-making authority.

Generally accepted accounting principles is the common set of accepted accounting standards and procedures that companies and their accountants must follow when they compile their financial statements.

Gilts is a term used in the United Kingdom to refer to government bonds issued by the British government, specifically by Her Majesty's Treasury. The name "gilt-edged" originates from the historical practice of issuing these bonds with a gold edge, signifying their perceived reliability and security.

The global reporting initiative is an international independent organization that helps businesses, governments, and other organizations understand and communicate their impacts on issues such as climate change, human rights, and corruption.

Government agencies are organizations that operate at various levels of government (federal, state, local) and have specific responsibilities set forth by law or statute. They have the power to regulate financial markets and oversee economic policies.

Debt securities issued by a government and sold to investors to support government spending. Government bonds are considered low-risk investments with fixed interest payments.

Greenwashing is the process in which companies make false or misleading statements about their environmental credentials, whether unintentionally or as a deliberate marketing strategy.

Growth equity investments are made in established companies that require capital for expansion, market penetration, or restructuring. These companies are typically beyond the early stages but still have potential for substantial growth.

A hard cap refers to the maximum limit or ceiling set for the total amount of capital that the fund or project aims to raise. It represents the absolute upper boundary of funds that the organizers or managers are willing to accept.

Hawala is an informal and traditional system of money transfer originating in Islamic finance. It involves the transfer of funds or assets between individuals or entities using a network of brokers or agents without the physical movement of money.

Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.

High net worth Individual is a classification used by describe someone with significant liquid assets who has the capacity to build and maintain an investment portfolio.

High risk jurisdiction refers to countries or regions with higher risk associated with money laundering or terrorist financing. Financial transactions in these areas require additional scrutiny.

The hold period is the duration of time an investment is held before it is sold or liquidated.

The hurdle rate is the minimum rate of return a project or investment must achieve before the manager or investor approves a predetermined condition.

Identification document refers to an official document which may be used to verify aspects of a person's personal identity.

Ijara is an Islamic financial contract based on a leasing or rental agreement. In an Ijara arrangement, a financial institution or lessor purchases an asset (such as property, equipment, or vehicles) and leases it to a lessee (customer) for a specified period. The lessee pays rent or lease payments to use the asset, and at the end of the lease term, the lessee might have the option to purchase the asset at an agreed-upon price. Ijara contracts comply with Sharia principles, avoiding the charging of interest (riba) and adhering to asset-backed financing where the lessor retains ownership of the asset during the leasing period.

Illiquid investments are assets that cannot easily and quickly be sold or exchanged for cash without a substantial loss in value.

Income distribution is the allocation of earnings and profits to investors in a pooled private fund. This is decided by the fund's structure and the agreement between investors and the fund managers.

An income statement, also known as a profit and loss statement, is a financial report that provides a summary of a company's revenues, expenses, and profits (or losses) over a specific period, usually quarterly or annually. It showcases the company's financial performance by detailing its sources of revenue, various expenses incurred to generate that revenue, and the resulting net income or net loss.

Inflation risk is the potential decrease in the value of investments or income due to rising inflation of an investment, asset or income stream.

An initial public offering is the process through which a private company offers shares to the public in a new stock issuance. This allows a company to raise capital from public investors, and the shares are subsequently traded on a stock exchange.

Institutional investors are organizations that invests on behalf of its members who might include large corporations, banks, endowments, pension funds, insurance companies, and mutual funds.

Interest rates refer to the cost of borrowing money or the return on invested funds, typically expressed as a percentage of the principal amount over a specified period.

Interest rate risk is the potential that a change in overall interest rates will reduce the value of a bond or other fixed-rate investment. Interest rate risk is measured by a fixed income security's duration, with longer-term bonds having a greater price sensitivity to rate changes.

A metric used to evaluate the potential profitability of an investment or a series of cash flows. The IRR represents the annualized rate of growth at which an investment breaks even or yields a net present value of zero.