Glossary
In the money
Any option or warrant that would have a positive value if it was immediately exercised.
Investment adviser
A financial intermediary who assists investors, particularly institutions, with investments in venture capital and other financial assets. Advisers assess potential new venture funds for their clients and monitor the progress of existing investments. In some cases, they pool their investors' capital in funds of funds.
IPO
"Initial Public Offering", "flotation", "float", "going public", "listing" are just some of the terms used when a company obtains a quotation on a stockmarket.
IRR: Internal Rate of Return
There are three versions of the internal rate of return used in AVCAL's published statistics - the arithmetic average, the capital weighted average, and the pooled average.The arithmetic average IRR for a sample would be the sum of the IRRs for the individual funds in the sample divided by the number of funds in the sample.The capital weighted average IRR is calculated in a similar manner, except the individual IRRs are weighted by fund size and affect the average in proportion to their size. Therefore, this average for the sample is skewed towards the larger funds. A pooled average IRR isn't actually an average, but one average calculated for the entire sample. In other words, instead of using the cash flows of the funds to calculate IRRs for each fund, the sample (and all of the accompanying cash flows) is treated as one fund and one IRR is calculated for it.