It is the typical deal structure of private equity funds; returns come from deleveraging, operational improvement and value uplift at exit. High leverage can turn small cash flow deviations into large financial risks.
Source: Birleşme ve satın alma uygulaması
Related terms
Private equity fundAn investment fund that invests in the equity of unlisted companies with the aim of exiting after a certain period at a higher value.LeverageThe extent to which a company uses debt to finance its assets or investments.Mezzanine financingIntermediate financing ranking after secured loans but before equity, which may take the form of subordinated debt, convertible debt or preferred equity.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: November 8, 2026 · This definition is for general information only.