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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

Bundling, unbundling

Creation of securities either by combining primitive and derivative securities into one composite hybrid or by separating returns on an asset into classes.

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