Ratchet

Ratchet

A mechanism whereby founders and management are able to recover a portion of their equity diluted by a down round upon the achievement of certain targets on an exit.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: Private equity
Company:
Product:
Acronym-Abbreviation:

Collect to Blossary

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Related terms

ratchet

Automotive; Motorcycles

Device that prevents a gear from reverse rotation.

ratchet

Chronometry; Clock

A mechanism allowing rotation in one direction only. A ratchet wheel having teeth of saw-tooth shape engaged by a click is used to prevent a mainspring unwinding.

ratchet

Financial services; Private equity

A mechanism whereby founders and management are able to recover a portion of their equity diluted by a down round upon the achievement of certain targets on an exit.

ratchet

Sports;

to pedal back and forth in partial strokes. This allows a rider to pass obstacles that would cause a pedal to hit if it were to reach the bottom of a normal stroke.

ratchet

Sports; Bicycle & electric bicycle

to pedal back and forth in partial strokes. This allows a rider to pass obstacles that would cause a pedal to hit if it were to reach the bottom of a normal stroke.

ratchet

Entertainment; Amusement parks

A toothed steel bar or device that is usually placed on the lift hill or other hills on a roller coaster that prevents the train from rolling backwards when the ratchet dog ...

leveraged recapitalisation

Financial services; Private equity

Transaction in which a company borrows a large sum of money and distributes it to its shareholders.

leveraged buy-out fund (LBO Fund)

Financial services; Private equity

An investment fund or company focusing on financing leveraged buyouts.

information rights

Financial services; Private equity

The contractual right to obtain information about a company, including, for example, attending board meetings. Typically received by venture capitalists investing in privately ...

institutional investor

Financial services; Private equity

An institution such as an investment company, mutual fund, insurance company, pension fund or endowment fund that generally has substantial assets and experience in investments. ...