EVCA Handbook Professional Standards for the Private Equity and ...

59 EVCA Handbook Professional Standards for the Private Equity and Venture Capital IndustryWWW.PRIVATEEQUITYEVALUATION.COMWWW.PRIVATEEQUITYEVALUATION.COMWWW.PRIVATEEQUITYEVALUATION.COMAppendix: DefinitionsThese guidelines have been developed by the IPEV Board with the valuable These guidelines input and endorsementhave been developed Capital by / Draw the Downs IPEV or Board Paid with Manager the for valuable the Fund, requiring input Investors and endorsementto provide capital inIn Capitalaccordance with the Fund Formation Documents.of the following associations:of the following associations:AFIC - Association Française des Investisseurs en Capital*AIFI - Italian Private Equity and Venture Capital AssociationAMEXCAP - Mexican Private Equity AssociationAMIC - Moroccan Private Equity and Venture Capital AssociationAPCRI - Portuguese Private Equity and Venture Capital AssociationAPEA - Arab Private Equity AssociationASCRI - Spanish Private Equity and Venture Capital AssociationATIC - Tunisian Venture Capital AssociationAVCA - African Venture Capital AssociationAVCAL - Australian Private Equity and Venture Capital AssociationAVCO - Austrian Private Equity and Venture Capital OrganizationBVA - Belgian Venturing AssociationBVCA - British Venture Capital Association*BVK - German Private Equity and Venture Capital Association e.V.CVCA - Canada’s Venture Capital and Private Equity AssociationCVCA - China Venture Capital AssociationCVCA - Czech Venture Capital and Private Equity AssociationDVCA - Danish Venture Capital AssociationEMPEA - Emerging Markets Private Equity AssociationEVCA - European Private Equity and Venture Capital Association*FVCA - Finnish Venture Capital AssociationGVCA - Gulf Venture Capital AssociationHKVCA - Hong Kong Venture Capital AssociationHVCA - Hungarian Venture Capital and Private Equity AssociationILPA - Institutional Limited Partners AssociationIVCA - Irish Venture Capital AssociationThe following definitions shall apply in these Guidelines:Capital Call / Draw Down Draw down by the Fund Manager of the Fund of additionalcapital from Investors, both amount and timing of notice inaccordance with the Fund Formation Documents.Called Capital / ContributedCapital at RiskAFIC - Association Française des Investisseurs en Capital*Carry / Carried InterestAIFI - Italian Private Equity and Venture Capital AssociationAMEXCAP - Mexican Private Equity AssociationCommitment / CapitalAMIC - Moroccan Private Equity and Commitment Venture / Committed Capital AssociationCapitalAPCRI - Portuguese Private Equity and Venture Capital AssociationDistributionAPEA - Arab Private Equity AssociationASCRI - Spanish Private Equity and Distributions Venture Capital to Paid in AssociationCapital(DPI)ATIC - Tunisian Venture Capital AssociationEnterprise ValueAVCA - African Venture Capital AssociationAVCAL - Australian Private Equity and Venture Capital AssociationFair ValueAVCO - Austrian Private Equity and Venture Capital OrganizationBVA - Belgian Venturing AssociationFinal CloseBVCA - British Venture Capital Association*BVK - German Private Equity and Venture First CloseCapital Association e.V.CVCA - Canada’s Venture Capital and Fund (or Private Equity Fund) AssociationCVCA - China Venture Capital AssociationCVCA - Czech Venture Capital and Private Equity AssociationDVCA - Danish Venture Capital AssociationFund Formation DocumentsEMPEA - Emerging Markets Private Equity AssociationEVCA - European Private Equity and Venture Capital Association*FVCA - Finnish Venture Capital AssociationGVCA - Gulf Venture Capital AssociationHKVCA - Hong Kong Venture Capital AssociationHVCA - Hungarian Venture Capital and Private Equity AssociationILPA - Institutional Limited Partners AssociationIVCA - Irish Venture Capital AssociationAn amount that is called by way of a call notice by the FundThe amount an Investor may lose if a Fund provided no returns.Generally, the amount consists of invested (Called) Capital, lessnon recallable distributions.The Fund Manager’s or any entities’ or persons’ involved with themanagement of the Fund, share in the net profit of the Fund asset out in the Fund Formation Documents.The total amount which an Investor commits to invest in a Fund.Payout of any amount or asset passed on by the Fund to theInvestor.Represents the cumulative distributions to Investors / LPs dividedby the cumulative Paid In Capital.The Enterprise Value is the value of the financial instrumentsrepresenting ownership interests in an entity plus the net financialdebt of the entity.The Fair Value is the price that would be received to sell an assetin an orderly transaction between market participants at themeasurement date.Date on which the Fund is closed to any further subscriptions ofinterests from Investors.Date on which the first Investors are admitted into a Fund.The Fund or Private Equity Fund is the generic term used in theseGuidelines to refer to any designated pool of investment capitaltargeted at all stages of private equity Investment from start-up tolarge buyout, including those held by corporate entities, limitedpartnerships and other investment vehicles, established with theintent to exit these investments within a certain timeframe.The entire set of legal documents, including side letters, agreedby the Investors and Fund Manager, covering the establishment,management, and winding up of the Fund; also referred to as theLimited Partnership Agreement (LPA).International Private Equity and Venture Capital Investor Reporting Guidelines l l Edition October 2012International Private Equity and Venture Capital Investor Reporting Guidelines l Edition October 201226 2627