Glossary
GAAP (Generally Accepted Accounting Principles)
Rules and procedures generally accepted within the accounting profession.
Gatekeepers
Specialist advisers who provide assistance to institutional and corporate investors when making private equity investments.
General partner
A partner in a private equity management company who has unlimited personal liability for the debts and obligations of the limited partnership and the right to participate in its management.
General partner’s commitment
Fund managers typically invest their personal capital right alongside their investors capital, which often works to instil a higher level of confidence in the fund. The limited partners look for a meaningful general partner investment of 1% to 3% of the fund.
Generalist fund
Funds with either a stated focus of investing in all stages of private equity investment, or funds with a broad area of investment activity.
Goodwill
The value of a business over and above its tangible assets. It includes the business’s reputation and contacts.
Grandfather rights
Special rights given to a limited partner to access a follow-on fund, after having been invested in the previous fund.
Grandfather rights
Special rights given to a limited partner to access a follow-on fund, after having been invested in the previous fund.
Grandstanding
When young, developing companies are rushed to an IPO by an inexperienced private equity organisation in order to demonstrate a successful exit record for the managment team.
Green Shoe or Shoe
Term for an underwriter ’s over-allotment option. This name derives from the fact that the over-allotment option technique was first used in a public offering of the securities of The Green Shoe Company.See Over-Allotment Option.This is also an underwriting agreement provision that allows syndicate members to purchase additional shares at the original price.
