A

AIF / AIFM	Alternative Investment Fund: a non-UCITS investment fund. Alternative Investment Fund Manager: the management company authorized to manage AIFs.
Amortization	The loss in value of an asset over time (wear, obsolescence) or through accounting entries.
Asset allocation	Distribution of portfolio capital across various asset classes (equities, bonds, real estate, alternatives) according to a risk/return strategy.
Asset (real estate)	All property holdings (buildings, land, professional, residential, logistics, hotel, or healthcare premises) held directly or through investment vehicles. Each asset is assessed based on its location, condition, rental income, and appreciation potential.
Asset management	Strategic function aimed at optimizing profitability, valuation, and liquidity of real estate portfolios, including lease management, technical monitoring, investment planning (CAPEX), and ESG integration.
Assets under distribution (AuD)	Assets marketed by a manager through its distribution network — technical term used in asset management.
Assets under management (AUM)	The total amount of assets (securities, real estate, cash, etc.) managed by an investment management company on behalf of clients or funds.

B

Benchmark	Reference index (e.g., CAC 40, MSCI World) used to measure a fund’s relative performance.
Blind pool	Fund raising capital without having yet identified its target companies at fundraising time.
Buyout / Capital transmission (LBO, MBO)	Acquisition of an existing company (management buyout, leveraged buyout) using debt leverage.

C

Cap rate (Capitalization rate)	Core indicator of real estate yield: ratio between net annual income and market value. A low cap rate usually indicates a “prime” asset (low risk, high demand).
Capital call (Drawdown)	Request made to fund subscribers (LPs) to pay a portion of their committed capital to finance investments or expenses.
Carry / Carried interest	Profit-share paid to the general partner (GP) of a private-equity fund when performance exceeds a minimum hurdle rate.
Cash flow	Incoming and outgoing cash movements generated by a business or investment (operations, financing, investment).
Co-investment	Direct investment by an LP alongside the fund in a specific company, usually under advantageous or pro-rata conditions.
Co-ownership	Legal regime governing a building divided among multiple owners, with shared expenses (elevator, heating, maintenance) allocated according to ownership shares.
Commitment	Amount an investor (LP) commits to a fund, to be called progressively by the manager.
Commercial lease	Legal contract defining rights and obligations of landlord and tenant for commercial use property, specifying duration (typically 3-6-9 years), rent, recoverable charges, and revision clauses.
Commercial real estate	All properties dedicated to professional use (offices, warehouses, shopping centers, hotels).
Commercial rent index (ILC)	Indicator for updating commercial lease rents based on inflation and construction costs.
Comparables / Valuation multiples	Valuation method comparing multiples (EV/EBITDA, P/E, etc.) of similar companies to estimate a target’s value.
Coupon	Periodic interest payment made to bondholders or debt security holders.

D

Development project	Construction or restructuring project aimed at creating value (promotion, rehabilitation, change of use).
Disposal	Sale of one real estate asset to reinvest in another offering a better risk/return profile or aligning more closely with portfolio strategy.
Distressed assets	Financially troubled or defaulted assets (debts or companies) that may be acquired in turnaround strategies.
Distribution	Payment made to investors (LPs) from a fund’s income or asset disposals.
Distribution-to-Paid-In (DPI)	Ratio of cumulative distributions to investors divided by contributed capital.
Diversification	Allocation of investments among uncorrelated assets to reduce overall risk.
Drawdown	Amount actually called from investors relative to committed capital.
Due diligence	In-depth financial, legal, and operational analysis of a target before investment or acquisition.

E

Energy audit	Detailed evaluation of a building’s energy performance, often preceding renovation work, in line with environmental regulations (e.g., French Tertiary Decree, EU Taxonomy).
Enterprise value (EV)	Total company value, including equity and net debt.
Equity multiple (MOIC)	Ratio of total value (distributions + residual value) to invested capital.
Escrow	Funds held in trust as security for obligations in a transaction.
ESG (Environment, Social, Governance)	Integration of non-financial criteria into investment analysis and management.
Exit	Strategy through which an investor or fund disposes of its stake — sale, IPO, or secondary buyout.
Exit rights / Tag-along / Withdrawal rights	Options allowing investors to exit an investment or fund under specific conditions.
Expected return	Projected future investment yield, based on assumptions.
Extension period	Additional period authorized beyond a fund’s initial term to extend investment or liquidation.

F

Financial occupancy rate (TOF)	Ratio of actual rents received to potential rents if all assets were leased.
Fund of Funds (FoF)	Investment vehicle that allocates capital into other private or public funds to achieve diversification.

G

Gate / Gate mechanism	Lock-up clause in illiquid funds limiting withdrawals or redemptions to protect remaining investors.
Gearing	Leverage ratio (Debt / Equity) measuring a structure’s financial leverage.
General Partner (GP)	Fund management entity responsible for investment selection, monitoring, and distributions in private equity.
Green building	Building designed or renovated to minimize its carbon footprint, compliant with certifications such as HQE, BREEAM, or LEED.
Gross / Net rental yield	Ratio between rental income (before/after expenses) and acquisition value; net yield is the best indicator of actual performance.

H

High Environmental Quality (HQE)	French certification ensuring building performance in energy efficiency, durability, and occupant comfort.
High-water mark	Benchmark level that must be exceeded before managers can earn performance fees (in active management contexts).
Holding period	Duration an investment is held before exit.
Hurdle rate	Minimum return rate beyond which the GP becomes eligible for carried interest

I

IFRS (International Financial Reporting Standards)	International accounting standards for financial statement presentation.
Implied capitalization rate	Theoretical yield of a property calculated from projected income and market value.
Indexation / Trackers / ETFs	Financial products replicating an index’s performance (e.g., ETFs), used in passive management.
Indicative valuation	Preliminary estimate of an investment’s value, often conducted during due diligence.
Index / Benchmark	Market reference used to compare portfolio performance.
Institutional investor	Professional entity managing large sums on behalf of third parties (pension funds, insurers, retirement schemes).
Investment period	Phase during which a fund is authorized to deploy committed capital.
IRR (Internal Rate of Return)	Discount rate that sets the net present value of cash flows to zero — a key private equity performance measure.

K

Key Person Clause (“Key Man”)	Provision in a limited partnership agreement suspending investments if key GP individuals leave the fund.
Kick-out / Knock-out	Mechanism for forced exit or removal under specific conditions (e.g., underperformance or non-compliance).

L

Leverage effect	Use of debt to amplify investment returns, with increased risk exposure.
Leveraged Buyout (LBO)	Acquisition of a company partially financed by debt secured against the target’s assets and future cash flows.
Liquidation / Preferential liquidation	Exit process giving priority payments to preferred shareholders or senior investors.
Liquidity / Asset liquidity	Ability of an asset to be converted quickly into cash without significant loss.
Loan-to-Value (LTV)	Ratio between debt used to acquire a property and its market value, measuring portfolio financial risk.
Lock-up period	Time during which investors cannot sell or transfer their shares.

M

Management Buy-in (MBI)	Acquisition of a company by an external management team joining the business.
Management Buyout (MBO)	Acquisition of a company by its own management team, often using leverage.
Management fees	Annual compensation paid to the manager, based on committed or managed capital.
Mark-to-market	Valuation of an asset at its current market price rather than historical cost or model-based value.
Mezzanine fund	Hybrid financing between debt and equity, often subordinated and remunerated via interest plus an equity kicker or bonus.
MoM (Multiple on Money)	Ratio of total value returned (distributions + residual value) to invested capital.
Mortgage	Security interest granted to a lender over real estate, allowing foreclosure in case of loan default.

N

NAV (Net Asset Value)	Value of assets minus liabilities per share of a fund or investment vehicle.
No-fault divorce clause	Contractual clause allowing investors to exit a fund without cause attributable to the GP.
Non-dilution / Anti-dilution	Mechanism protecting investors from share dilution during subsequent lower-priced issuances.

O

Occupancy rate	Ratio of leased area to total area of an asset or portfolio.
Office (asset class)	Category of real estate assets comprising office buildings, often located in prime or peripheral business districts, with varying yield and risk profiles.
Operating margin	Operating profit before depreciation, representing recurring portfolio performance.
Operating Partner	Professional with operational expertise integrated within a fund to support portfolio companies.
Option (Call / Put)	Right, but not obligation, to buy (call) or sell (put) an asset at a fixed price before or at maturity.
Origination	Process of sourcing and generating potential investment opportunities for a fund.

P

Performance fees / Carry	Additional remuneration if a fund achieves or exceeds a performance threshold (hurdle rate).
Portfolio	Set of assets held under a mandate or within a fund.
Property management	Administrative (leases, rents), technical (maintenance), and legal (litigation) oversight of real estate assets.
Private placement	Sale of securities (equity, bonds) directly to institutional or qualified investors, bypassing public offerings.
Prospectus / Offering Memorandum (PPM)	Disclosure document presenting an investment vehicle’s features, risks, strategy, and fees.

Q

Quarter / Quartile

Division of performance data into four segments: Q1 (top 25%), Q2 (median), etc.

R

Real estate ESG reporting	Structured disclosure of environmental, social, and governance metrics for property portfolios.
Real estate fund (SCPI, OPCI, SCI, AIF…)	Collective investment vehicle allowing investors access to diversified real estate portfolios without direct management. Each fund type has specific liquidity and tax rules.
Real estate liquidity	Ease of selling an asset without heavy discounting, depending on size, location, and type.
Recapitalization	Corporate restructuring involving debt repayment, new capital injection, or equity issuance to support growth or reduce leverage.
Rent reference index (IRL)	Legal indicator for annual adjustment of residential rents.
Residual Value to Paid-In (RVPI)	Ratio of residual unrealized value to invested capital, representing unrealized portfolio value.
Return / Yield	Total gain (income and capital appreciation) generated by an investment over time.
Return on Investment (ROI)	Simple profitability ratio: net gain divided by investment cost.
Risk-free rate	Yield of an asset considered riskless (e.g., government bonds) — base for risk asset comparison.
Roll-over equity	Portion of shareholders’ capital reinvested into the new structure post-transaction.

S

Secondary fund	Fund specialized in acquiring existing fund interests (unrealized commitments or positions in private funds).
Secondary market (SCPI / OPCI)	Organized marketplace enabling trading of non-listed real estate fund shares to provide liquidity.
Secondaries (Private Equity secondaries)	Purchase or sale of existing fund interests prior to fund liquidation.
Spread	Difference between two interest rates (e.g., corporate bond yield vs. risk-free rate).
SPV (Special Purpose Vehicle)	Legal entity created for a specific investment or transaction to isolate risks.
Stress test	Simulation of extreme scenarios (e.g., market crash) to assess portfolio or fund impact.

T

Terminal / Holding period terminal value	Estimated residual value at the end of the investment period within a valuation model.
Transaction costs	Total expenses related to the purchase or sale of an asset (transfer taxes, notary, brokerage, commissions).
Transparency	Degree of clarity and accessibility of information about assets, valuations, fees, and risks.

U

Underperformance	Performance below the benchmark or expectations.
Underwriting	Process by which an institution guarantees a security issue by purchasing unsold portions.
Unfurnished / Furnished rental	Distinction determining tax regime and potential yield levels.
Upside potential	Portion of anticipated return above the base-case scenario if performance is strong.

V

Valuation multiple (EV/EBITDA, P/E, etc.)

Indicators used to value a company by comparison with peers.

W

Write-down / Write-up

Reduction or increase in an asset’s book value based on market or valuation scenarios.