Securities & Liquidity
Illiquid Security
A financial instrument that cannot be readily sold or transferred without significant delay, discounting or reliance on specialised channels.
Delisting
The removal of a security from a regulated exchange. The instrument continues to exist as a legal ownership interest but loses exchange-based liquidity.
Suspended Security
A security whose trading has been temporarily or indefinitely halted by an exchange or regulator due to corporate, financial or compliance events.
Restricted Security
A holding subject to contractual or regulatory limitations on resale, transfer or assignment, reducing its marketability.
Over-the-Counter (OTC)
A market where instruments trade directly between parties rather than on a centralised exchange, often with limited volume and price transparency.
Price Discovery
The process by which market activity establishes the price of an asset. In illiquid markets this mechanism is fragmented or absent.
Distress & Capital Structure
Distressed Security
An instrument issued by a company experiencing significant financial or operational stress, typically trading at a reduced valuation reflecting uncertainty.
Capital Structure
The composition of a company's funding across debt and equity, defining the priority in which claims are paid.
Covenant Breach
A failure to meet a contractual condition attached to debt, which can accelerate repayment or trigger restructuring.
Restructuring
A negotiated or court-supervised reorganisation of a company's debt, equity or operations to restore viability.
Recapitalisation
A change to the mix of debt and equity in a company's capital structure, often to address leverage or liquidity pressure.
Debt-to-Equity Conversion
A restructuring mechanism in which creditor claims are exchanged for equity ownership in the restructured entity.
Subordination
The ranking of a claim below others in the capital structure, affecting the order and likelihood of repayment.
Special Situation
An investment opportunity driven by a specific corporate or legal event — restructuring, insolvency, delisting or dislocation — rather than ordinary market pricing.
Insolvency, Claims & Recovery
Insolvency Claim
A legally recognised financial entitlement held by a creditor against a company in formal insolvency or bankruptcy proceedings.
Creditor Hierarchy
The legal order of priority — secured, preferential, unsecured — in which creditor claims are repaid from an insolvency estate.
Secured Claim
A claim backed by collateral, granting the holder priority rights over the specific pledged assets.
Unsecured Claim
A claim without collateral backing, typically ranked lower and dependent on residual estate value.
Recovery Value
The estimated amount a claimant may ultimately receive from an insolvency estate, expressed as a proportion of face value.
Insolvency Estate
The pool of assets gathered and administered for distribution to creditors during insolvency proceedings.
Liquidation Preference
A contractual right that determines the order and amount certain holders receive on a liquidation or winding-up before others.
Cross-Border Insolvency
An insolvency involving assets, creditors or proceedings across more than one jurisdiction and legal system.
Private & Secondary Markets
Private Market Holding
An equity or equity-linked interest in a company not listed on a public exchange, typically illiquid and subject to transfer restrictions.
Pre-IPO Equity
Shares in a private company expected to pursue a future public listing, held by founders, employees or early investors.
Secondary Transaction
The transfer of an existing private holding from one holder to another, as distinct from a primary issuance of new shares.
Right of First Refusal
A contractual right allowing a company or existing shareholders to match an offer before a holding is transferred to a third party.
Lock-Up Period
A contractual period during which holders are restricted from selling or transferring their shares.
Tender Offer
A company-facilitated process inviting eligible shareholders to sell shares on defined terms, often used to provide structured liquidity.
Portfolios, Process & Compliance
Legacy Portfolio
A collection of accumulated, non-core or dormant holdings no longer managed under a current investment mandate.
Portfolio Rationalisation
The structured review and simplification of a portfolio to separate liquid, illiquid and distressed components.
Counterparty Mapping
The identification of institutional investors or buyers whose mandates align with a specific asset or situation.
Transaction Feasibility
An assessment of the practical, legal and counterparty conditions required to structure a transfer or engagement.
Due Diligence
The structured investigation of an asset's legal, financial and ownership characteristics prior to any transaction.
AML / KYC
Anti-Money-Laundering and Know-Your-Customer procedures used to verify counterparties and the source of funds.
Sanctions Screening
The checking of counterparties against applicable sanctions lists and restrictions before engagement.
No-Solicitation Basis
Information shared for context only, not constituting an offer, recommendation or invitation to transact.
Understand the
Terminology
These definitions are provided for general educational and contextual purposes. They do not constitute legal, financial or investment advice, and specific situations should be assessed individually.
Definitions are simplified for accessibility and may vary by jurisdiction. Professional advisors should be consulted regarding specific circumstances.