Altamir - 2018 Registration document

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Supplementary information

Glossary

PRIVATE EQUITY Acquiring an ownership interest in companies that are generally not listed. Private equity provides vital support for an unlisted company throughout its existence. It finances the start-up (venture capital), growth (growth capital), and acquisition/LBO phases in the life of the company.

PUBLIC-TO-PRIVATE (P TO P) Transaction consisting of the repurchase of all shares of a listed company with the intention of delisting.

REFINANCING Transaction consisting of modifying a company’s debt structure, most often to increase the level of debt and reduce equity, so that a portion of investors’ initial outlay can be returned to them.

YIELD The annual dividend received per share, expressed as a percentage of the stock market price.

SCA (SOCIÉTÉ EN COMMANDITE PAR ACTIONS OR FRENCH PARTNERSHIP LIMITED BY SHARES) The French partnership limited by shares allows for the management and the ownership of a company to be completely dissociated. The capital of an SCA is divided into shares, but has two categories of shareholders: n the limited partners who are shareholders and whose liability is limited to the amount of their contribution (the SCA is similar to a société anonyme or public limited company in this regard); n one or more general partners who are jointly and severally liable for all of the Company’s debt. The Company’s manager(s) are generally selected from among the general partners, and the limited partners cannot become managers. The Articles of Association detail the methods for appointing current and future managers. The manager(s) has (have) the broadest powers to act under any circumstances in the name of the Company. They can be removed from office only in accordance with the provisions of the Articles of Association. SCR (SOCIÉTÉ DE CAPITAL RISQUE OR PRIVATE EQUITY COMPANY) Altamir elected the SCR status from inception. This status provides it with a specific legal and tax framework, adapted to its corporate objective, which is the management of a securities portfolio. The SCR status imposes certain requirements; chiefly that: n at least 50% of the net assets must be composed of equity securities (or give access to equity) issued by companies not listed on a stock exchange, whose registered office is located in a European Union Member State, Norway, Iceland or Liechtenstein; n the Company’s borrowings may not exceed 10% of net statutory shareholders’ equity. In exchange for the requirements related to this status, the SCR benefits fromadvantageous tax treatment. Likewise, investors in SCRs benefit from favourable tax treatment, under certain conditions.

EXIT Sale of an investment to a company with strategic goals or to a financial investor, or via an IPO. SPIN-OFF Creation of a new company that is legally and financially independent from its original group.

INTERNAL RATE OF RETURN (IRR) Measures the annualised rate of return on invested capital. It is used to evaluate the performance of private equity transactions.

TOTAL SHAREHOLDER RETURN (TSR) TSR is the rate of return on a share over a given period, including dividends and any realised capital gains.

UPLIFT Positive difference between the sale price of an investment and the amount at which it was valued by the manager of the fund before the sale. ENTERPRISE VALUE The value of a company (enterprise value or EV) corresponds to the market value of the industrial and commercial facilities. It is equal to the sum of the market value of shareholders equity (market capitalisation if the company is listed) and the market value of net borrowings.

184 Registration document ALTAMIR 2018

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