Private Equity and Venture Capital Glossary
A concept that during the first few years of a private equity fund, cash flow or returns are negative due to investments, losses, and expenses, but as investments produce results the cash flow or returns trend upward. A graph of cash flow or returns versus time would then resemble the letter “J”.
A loan that has a lower priority than a senior loan in case of a liquidation of the asset or borrowing company. Also known as Subordinated debt.