AFM274 Chapter Notes - Chapter 23: Investment Banking, T-Cell Receptor, Underwriting

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM274
• Professor: Tu Nguyen

Document Summary

Angel investors: individual investors who buy equity in small private firms (typically in the first round of outside equity financing). Venture capital firm: is a limited partnership that specializes in raising money to invest in the private equity of young firms. Venture capitalists: the general partners who work for and run a venture capital firm. Institutional investors (like pension funds) are often limit ed partners. Carried interest: the commission (typically 20% -30%) the general partners of a venture capital firm take from any posi tive return, leaving the rest for the limited partners. Private equity firm: is a limited partnership that specializes in rai sing money to invest in the private equity of existing privately held firms. Leveraged buyout (lbo): when a publicly traded firm"s equity is bought out and taken private by a single firm. Sovereign wealth funds: pools of money controlled by a government. Usually raised from royalty, resource revenue, or taxes.