Draw-down

Definition:

In context of private equity, when investors commit themselves to back a private equity fund, all the funding may not be needed at once and therefore, capital is drawn down at a later date.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Reopen an issue

The Treasury, when it wants to sell additional securities, will occasionally sell more of an existing issue (reopen it) rather than offer a new issue.

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