vuosikirja / yearbook 2007 – 2008 - Suomen pääomasijoitusyhdistys ry

vate equity investment organisation or fromanother shareholder or shareholders.Rescue/Turnaround: Financing that is madeavailable to an existing business which has experiencedtrading difficulties with a view tore-establishing prosperity.Refinancing bank debt: To reduce a company’slevel of gearing.Management buyout (MBO): Financingprovided in order to enable a company’s currentoperating management and investors toacquire an existing product line or business.Management buy-in (MBI): Financingprovided to enable a manager or group ofmanagers from outside the company to buyinto a company with the support of privateequity investors.Venture purchase of quoted shares: Thepurchase of quoted shares with the purpose ofdelisting the company.Other purchase of quoted shares: Thepurchase of shares on a public stock market.This type of financing is excluded from theresults.Financial instrumentsEquity: Ownership interest in a corporation,represented by the shares of stock that areheld by investors.Quasi-Equity: Quasi equity encompassessuch instruments as convertible shareholderloans, loan notes, preference shares. These instrumentsare unsecured and convertible onexit.Mezzanine: Loan financing that is halfwaybetween equity and secured debt, either unsecuredor with junior access to collateral.Secured debt: A loan backed by assets belongingto the borrower in order to decreasethe risk assumed by the lender.Unsecured debt: A loan not backed by theborrower’s assets.Composition of industry sectorsCommunications:• Telecommunications hardware (e.g. voiceand data communications equipment, networkingequipment)• Telecommunications carriers• Internet Technology (e.g. browsers, portals,search engines, ISPs, website design)• TV and radio broadcasting• Media houses• PublishingComputer Related• Computer Hardware (including peripheralsand voice synthesis / recognition equipment)• Computer Software• Computer Services• Computer SemiconductorsBiotechnology• Agricultural / animal biotechnology (e.g.plant diagnostics)• Industrial biotechnology ( e.g. derivedchemicals)• Biotechnology related research and productionequipmentMedical Related• Healthcare• Medical Instruments and Devices (e.g. diagnosticand therapeutic equipment)• Pharmaceuticals (e.g. drug development)Electronics• Batteries• Power supplies• Fibre opticsstaticticts55