Venture capital (VC)

Venture capital (VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential (often high risk) or which have demonstrated high growth and have no access to capital market. Venture capital firms or funds invest in these early-stage companies in exchange for equity, or an ownership stake. Venture capital often associated with younger companies involved in unproven early-stage business.

Private Equity (PE)

Private Equity (PE) is basically the way of raising equity privately. Private Equity is used to describe all kinds of a fund that pools money from a bunch of investors that are used to acquire ownership stakes in high growth potential companies. It is often goes with the funds trying for mature, revenue generating companies in need of some revitalization in order to become worth much more.

Impact Fund

Impact Fund is an alternative investment fund which invest in equity and equity linked instruments of such companies, organizations and funds which are engaged in activities with the intention to generate a measurable and beneficial social or environmental impact in addition to financial returns.

Buyout

Buyout means such investment of an alternative investment fund by which the ownership equity of a company or majority of outstanding equity shares of the company is acquired by the fund.

Constitutive documents

Constitutive documents means the principal documents and agreements governing the formation of a fund including the trust deed, placement memorandum, subscription agreement, investment management agreement and all other related material documents.

High net worth individual

High net worth individual means a natural person having minimum net worth of taka 20 (twenty) million certified by the concerned tax authority.

Trust

Trust means a trust established under the Trust Act, 1882 (Act no. II of 1882) for the purpose to constitute an alternative investment fund;

Trustee

Trustee means a Trustee, appointed and registered in respect of any Fund established under Alternative Investment Rules-2015.

Trust Deed

Trust deed means the deed executed between the sponsor(s) and the Trustee in respect to Alternative Investment Fund.

Eligible investors or investors

Eligible investors or investors means participants eligible and competent to understand the risk & return potentials to invest and commit capital to any alternative investment fund and be either a registered local or foreign fund manager or a company incorporated in Bangladesh or abroad or a statutory body or a local government authority or a bank or a financial institution or an insurance company or a merchant banker or a stock dealer or an asset manager or an alternative investment fund managed by another, registered pension fund or a registered provident fund or a registered trust fund or a registered super annuation fund or a foreign fund or a foreign individual or a high net worth resident or non¬resident Bangladeshi individual.