PE and AI Glossary

Plain-English definitions of the terms that come up constantly in private equity and in the AI world that is reshaping it. Deal terms, return metrics, fund structure, and the AI vocabulary you will hear in every strategy conversation. Every term has a short definition and a concrete example of how it is used.

A-Z Index

A

Accretion and Dilution · Agent · AUM

B

Bolt On

C

Carry · Copilot

D

Data Room · Debt Stack · DPI · Dry Powder · Due Diligence

E

EBITDA · EBITDA Adjustment · EBITDA Multiples · Entry and Exit Multiple

F

Fund

G

GP

H

Hold Period · Holdco

I

Inference Cost · IRR

J

J Curve

L

LBO · Leverage · LLM · LP

M

Mezzanine · MOIC · Multiple of Money

N

NAV

P

Platform Company · Preferred Equity

Q

Quality of Earnings

R

RAG · Recapitalization · Roll Over Equity

S

S 1 · Spin Out · Synergy

T

Take Private · TVPI

V

Vintage Year

Deal Terms

• Accretion and Dilution
• Bolt On
• Data Room
• Due Diligence
• EBITDA
• EBITDA Adjustment
• EBITDA Multiples
• Entry and Exit Multiple
• LBO
• Platform Company
• Quality of Earnings
• Recapitalization
• Roll Over Equity
• S 1
• Spin Out
• Synergy
• Take Private

Returns

• Carry
• DPI
• IRR
• J Curve
• MOIC
• Multiple of Money
• NAV
• TVPI

Structure

• AUM
• Debt Stack
• Dry Powder
• Fund
• GP
• Hold Period
• Holdco
• Leverage
• LP
• Mezzanine
• Preferred Equity
• Vintage Year

AI in PE

• Agent
• Copilot
• Inference Cost
• LLM
• RAG

Missing a term, or want to suggest one we should add? Talk to Adrian Scott →