@wallstwardrobe: If you’re interviewing for private equity or just starting out in the industry, these are 10 more terms you’ll hear constantly. Knowing the definition is one thing. Understanding how they’re used in a deal is what makes you sound experienced. 1. MOIC (Multiple on Invested Capital) The total value of an investment divided by the equity invested. A 2.5x MOIC means the investment is worth 2.5 times the original equity investment, including distributions. 2. Capital Call When a PE fund requests committed capital from its investors (LPs) to fund investments or expenses. 3. Management Rollover When existing owners or management reinvest part of their equity proceeds into the company as part of an acquisition. 4. EBITDA Add-Back An adjustment to EBITDA for certain expenses considered nonrecurring or otherwise appropriate to normalize earnings. Often heavily scrutinized during diligence. 5. Continuation Vehicle A new investment vehicle used to hold an asset from an existing fund, often allowing some LPs to exit while others retain exposure. 6. Preferred Return (Hurdle Rate) The return threshold LPs typically receive before the GP becomes entitled to carried interest, depending on the fund’s distribution waterfall. 7. Carried Interest (Carry) The share of investment profits allocated to the fund manager under the fund’s terms, often 20% after applicable thresholds. 8. Equity Cure A provision allowing a sponsor to contribute equity to help address certain financial covenant breaches under a credit agreement. 9. Dividend Recapitalization When a portfolio company takes on additional debt to fund a distribution to its shareholders, often including the PE sponsor. 10. Exit Multiple The valuation multiple assumed or achieved when selling an investment, commonly expressed as enterprise value divided by EBITDA. Save this before your next private equity interview. #privateequity

Hannah

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Tuesday 27 October 2026 13:49:20 GMT