Growth Equity and Life Sciences Reference

Definitions of the terms that govern growth equity and life sciences investing: how private fund performance is measured, how capital moves between limited and general partners, and how diagnostics, devices and digital health are regulated and paid for. Each entry opens with the definition, then sets out the mechanism, a worked example, the reading for a limited partner, the sector-specific reading, and the governing authority behind every statement.

AI Diligence in Life SciencesHow to test AI claims in life sciences companies against FDA device and drug guidance, change control plans, and the regulatory record, as of October 2026.
Capital CallA capital call asks limited partners to fund pledged capital. Notice periods, default remedies and subscription credit lines, with ILPA and Delaware sources.
Carried InterestCarried interest defined: the waterfall tiers, a $100 million fund worked example, ILPA practice, and the three-year holding period under IRC section 1061.
Co-InvestmentCo-investment is an investment made alongside a private equity fund. How allocation, fees and expenses work, with a worked example and SEC authority.
Distribution WaterfallHow a private fund orders distributions: capital, preferred return, catch-up and carry split, in European and American waterfalls, with clawback.
Distributions to Paid-In Capital (DPI)DPI divides cumulative distributions by paid-in capital. Formula, a worked $100 million fund example, GIPS and ILPA treatment, and vintage benchmarks.
Due Diligence Questionnaire (DDQ)What the ILPA Due Diligence Questionnaire 2.0 covers, how a general partner answers it, and how a limited partner reads the responses.
Emerging ManagerHow CalPERS, the New York State Common Retirement Fund and Texas TRS define an emerging manager, and where the SEC $150 million adviser exemption sits.
Family Offices in Private EquityA family office manages one family's wealth and is excluded from the Advisers Act under Rule 202(a)(11)(G)-1. Structure, investor status and allocation data.
Growth EquityGrowth equity defined: minority capital for established, fast-growing companies, positioned between venture capital and leveraged buyouts.
Key Person ProvisionKey person provision defined: key person events, investment period suspension, cure votes and removal for cause or without cause under ILPA guidance.
Laboratory-Developed Tests and CLIAHow a laboratory-developed test is regulated under CLIA, the 2025 vacatur of FDA's LDT rule, and how MolDX coverage applies, with citations.
Management Services OrganizationHow a management services organization works with a physician-owned practice, with 2025 Oregon and California law and the federal fee rules, cited.
Multiple on Invested CapitalMOIC divides an investment's realized and unrealized value by the capital invested. Formula, gross versus net, and the link to IRR and TVPI, with an example.
Operating PartnerHow private equity operating partners are engaged and paid, who bears their cost, and what the SEC requires sponsors to disclose to investors.
Private Equity SecondariesPrivate equity secondaries explained: LP-led sales, GP-led continuation vehicles, pricing against NAV, ILPA guidance and current market volume.
Software as a Medical Device (SaMD)SaMD defined under IMDRF and FDA rules: the section 520(o) exclusions, clinical decision support, 510(k), De Novo, PMA and change control plans.
Special Purpose Vehicle (SPV)A special purpose vehicle holds one investment for its owners. How SPVs are formed, which exclusions and exemptions apply, and a worked example.
The Illiquidity PremiumThe illiquidity premium is the discount investors require for assets they cannot sell quickly, and how public market equivalents measure it in private equity.
The J-CurveThe J-curve is the early dip in a private equity fund's net cash flow and reported returns. A $100 million fund example and how subscription lines change it.
The Mid-Market in Private EquityMid-market definitions side by side: revenue, EBITDA, and deal-size bands from the National Center for the Middle Market, PitchBook, and SEC filings.
Total Value to Paid-In (TVPI)TVPI equals distributions plus remaining value, divided by paid-in capital, or DPI plus RVPI. ILPA definitions and a $100 million fund example.