{"data":[{"slug":"rule-10b5-1","term":"10b5-1 Plan","abbrev":null,"grp":"Public Markets","short_def":"A pre-arranged written trading plan that allows corporate insiders to buy or sell company stock on a set schedule, providing an affirmative defense against accusations of insider trading."},{"slug":"accredited-investor","term":"Accredited Investor","abbrev":null,"grp":"Private Markets","short_def":"A legal eligibility category defined by securities regulators that determines which individuals and entities may participate in certain private, unregistered investment offerings."},{"slug":"advance-rate","term":"Advance Rate","abbrev":null,"grp":"Public Markets","short_def":"An advance rate is the percentage of a collateral asset's market value that a lender is willing to extend as a loan, effectively setting the maximum borrowing capacity against that asset."},{"slug":"agreed-value","term":"Agreed Value Coverage","abbrev":null,"grp":"Banking & Insurance","short_def":"A property insurance arrangement in which the insurer and policyholder agree on an asset's value upfront, eliminating any depreciation dispute at the time of a claim."},{"slug":"alpha","term":"Alpha","abbrev":null,"grp":"Public Markets","short_def":"Alpha is the portion of an investment's return that is attributed to the manager's skill or decisions, after accounting for the return explained by market exposure alone."},{"slug":"amt-term","term":"Alternative Minimum Tax","abbrev":"AMT","grp":"Tax","short_def":"A parallel federal tax system that recalculates income using different rules and rates to ensure high-income taxpayers pay a minimum amount of tax."},{"slug":"annual-exclusion","term":"Annual Exclusion","abbrev":null,"grp":"Trusts & Estate","short_def":"A per-recipient, per-year amount that any individual may give away free of gift tax without touching their lifetime exemption; the amount is set by law and adjusted periodically."},{"slug":"basis-point","term":"Basis Point","abbrev":"bp","grp":"Public Markets","short_def":"One one-hundredth of one percentage point, commonly written as \"bp\" or \"bps,\" used in finance to express small differences in rates, fees, and returns precisely."},{"slug":"benchmark-term","term":"Benchmark","abbrev":null,"grp":"Public Markets","short_def":"A benchmark is a standard index or reference portfolio used to measure whether an investment portfolio is performing well or poorly relative to a defined market."},{"slug":"beneficiary","term":"Beneficiary","abbrev":null,"grp":"Trusts & Estate","short_def":"A person or entity entitled to receive benefits — income, principal, or both — from a trust, estate, insurance policy, or account."},{"slug":"beta","term":"Beta","abbrev":null,"grp":"Public Markets","short_def":"Beta measures how sensitively an investment's returns move relative to a reference market — typically expressed as a number where 1.0 means the investment moves in line with that market."},{"slug":"blackout-period","term":"Blackout Period","abbrev":null,"grp":"Public Markets","short_def":"A company-imposed window of time during which designated employees and insiders are prohibited from buying or selling company stock, typically surrounding earnings announcements or other material corporate events."},{"slug":"buffered-note","term":"Buffered Note","abbrev":null,"grp":"Public Markets","short_def":"A buffered note is a type of structured note that absorbs the first defined percentage of losses on a reference asset, in exchange for capping the investor's upside gains."},{"slug":"capital-call","term":"Capital Call","abbrev":null,"grp":"Private Markets","short_def":"A fund manager's formal request requiring investors to transfer a portion of their previously committed — but not yet paid — capital by a specified deadline."},{"slug":"captive-term","term":"Captive Insurer","abbrev":null,"grp":"Banking & Insurance","short_def":"A captive insurer is a licensed insurance company created and owned by a business or family primarily to insure the risks of its owner, rather than to sell coverage to the general public."},{"slug":"carried-interest","term":"Carried Interest","abbrev":null,"grp":"Private Markets","short_def":"The share of a fund's investment profits paid to the general partner as performance compensation, typically calculated after investors have received a minimum return."},{"slug":"charitable-deduction-term","term":"Charitable Deduction","abbrev":null,"grp":"Tax","short_def":"A charitable deduction is the reduction in taxable income or estate allowed when a taxpayer makes a qualifying gift to an eligible nonprofit organization, with limits that vary by asset type, recipient, and the taxpayer's income."},{"slug":"clt","term":"Charitable Lead Trust","abbrev":"CLT","grp":"Trusts & Estate","short_def":"A trust that pays a stream of income to one or more charities for a fixed period, after which the remaining assets pass to family members or other non-charitable beneficiaries."},{"slug":"crt","term":"Charitable Remainder Trust","abbrev":"CRT","grp":"Trusts & Estate","short_def":"A tax-exempt trust that pays income to the grantor or other named beneficiaries for a period, after which the remaining assets pass to one or more charities."},{"slug":"crut","term":"Charitable Remainder Unitrust","abbrev":"CRUT","grp":"Trusts & Estate","short_def":"A Charitable Remainder Unitrust, a CRT variant that pays beneficiaries a fixed percentage of the trust's assets as revalued each year, rather than a fixed dollar amount."},{"slug":"clawback","term":"Clawback","abbrev":null,"grp":"Private Markets","short_def":"A contractual obligation requiring the general partner to return previously paid carried interest to limited partners if, at the end of the fund's life, the GP received more carry than it was ultimately entitled to."},{"slug":"closed-end-fund-term","term":"Closed-End Fund","abbrev":"CEF","grp":"Public Markets","short_def":"A closed-end fund (CEF) is a pooled investment vehicle that raises a fixed amount of capital through an initial offering, lists its shares on an exchange, and does not issue or redeem shares on demand."},{"slug":"co-investment","term":"Co-Investment","abbrev":null,"grp":"Private Markets","short_def":"A direct stake in a single deal offered to investors alongside a private fund, often with reduced or waived management fees and carried interest."},{"slug":"collar","term":"Collar","abbrev":null,"grp":"Public Markets","short_def":"A collar is an options strategy that limits both the downside loss and upside gain on a security position by simultaneously purchasing a protective put and selling a covered call."},{"slug":"maintenance-call","term":"Collateral (Maintenance) Call","abbrev":null,"grp":"Public Markets","short_def":"A lender's demand that a borrower deposit additional collateral or repay part of a loan because the pledged assets have fallen below the required minimum value."},{"slug":"committed-capital","term":"Committed Capital","abbrev":null,"grp":"Private Markets","short_def":"The total amount an investor has contractually agreed to provide to a fund, regardless of how much has actually been transferred to date."},{"slug":"concentrated-position","term":"Concentrated Position","abbrev":null,"grp":"Public Markets","short_def":"A concentrated position is a single investment — typically one stock or private holding — that represents an outsized share of a family's total net worth."},{"slug":"consolidated-reporting","term":"Consolidated Reporting","abbrev":null,"grp":"Family & Governance","short_def":"Consolidated reporting assembles data from all of a family's accounts, custodians, funds, and properties into a single unified view of total wealth and performance."},{"slug":"continuation-fund-term","term":"Continuation Fund","abbrev":null,"grp":"Private Markets","short_def":"A new fund vehicle created by a general partner to retain one or more assets beyond a fund's original term, offering existing investors the choice to roll over or receive liquidity."},{"slug":"convexity","term":"Convexity","abbrev":null,"grp":"Public Markets","short_def":"A measure of how a bond's duration itself changes as interest rates move, capturing the curvature in the price-yield relationship that duration alone cannot describe."},{"slug":"corpus","term":"Corpus (Principal)","abbrev":null,"grp":"Trusts & Estate","short_def":"The property — cash, securities, real estate, or other assets — held inside a trust, also called the principal or trust estate, distinct from any income those assets generate."},{"slug":"cost-basis","term":"Cost Basis","abbrev":null,"grp":"Public Markets","short_def":"Cost basis is the original purchase price of an asset, adjusted for certain events, used to calculate the taxable gain or loss when that asset is eventually sold."},{"slug":"covered-call","term":"Covered Call","abbrev":null,"grp":"Public Markets","short_def":"A strategy in which an investor who owns shares sells another party the right to buy those shares at a set price, collecting a cash premium in exchange for capping potential upside."},{"slug":"credit-spread","term":"Credit Spread","abbrev":null,"grp":"Public Markets","short_def":"A credit spread is the additional yield a bond offers above a comparable-maturity government bond, compensating investors for the risk that the issuer may fail to make promised payments."},{"slug":"crummey-power","term":"Crummey Power","abbrev":null,"grp":"Trusts & Estate","short_def":"A temporary right granted to a trust beneficiary to withdraw a newly contributed gift, making that contribution eligible for the annual gift tax exclusion."},{"slug":"custodian-term","term":"Custodian","abbrev":null,"grp":"Family & Governance","short_def":"A custodian is a financial institution that holds a client's assets for safekeeping, settles trades, and maintains official records of ownership."},{"slug":"cy-pres","term":"Cy Pres","abbrev":null,"grp":"Philanthropy","short_def":"A legal doctrine allowing courts — or sometimes trustees — to redirect charitable gifts or trust assets to a purpose as close as possible to the original intent when that intent can no longer be fulfilled."},{"slug":"day-count","term":"Day-Count Test","abbrev":null,"grp":"Tax","short_def":"A day-count test is any rule that uses the number of days a person is physically present in a jurisdiction as a threshold for determining tax residency or domicile status."},{"slug":"decanting","term":"Decanting","abbrev":null,"grp":"Trusts & Estate","short_def":"The process by which a trustee distributes assets from an existing trust into a new trust with updated or improved terms, using authority granted by state law or the original trust document."},{"slug":"direct-indexing-term","term":"Direct Indexing","abbrev":null,"grp":"Public Markets","short_def":"Direct indexing is a strategy in which an investor owns the individual securities that make up an index directly, rather than holding a fund that tracks that index."},{"slug":"directed-trust-term","term":"Directed Trust","abbrev":null,"grp":"Trusts & Estate","short_def":"A trust structure in which certain decisions — commonly investment management or distribution authority — are formally delegated to named advisors rather than left solely to the trustee."},{"slug":"d-and-o","term":"Directors & Officers Insurance","abbrev":"D&O","grp":"Banking & Insurance","short_def":"Insurance that covers the personal financial liability of individuals serving on a corporate or nonprofit board for decisions made in their official capacity."},{"slug":"distribution","term":"Distribution","abbrev":null,"grp":"Private Markets","short_def":"Cash or securities returned to investors by a fund when it sells an asset, receives income, or otherwise monetizes a holding."},{"slug":"distribution-standard","term":"Distribution Standard","abbrev":null,"grp":"Trusts & Estate","short_def":"The language in a trust document that defines when, how much, and for what purposes a trustee may or must distribute assets to beneficiaries."},{"slug":"waterfall","term":"Distribution Waterfall","abbrev":null,"grp":"Private Markets","short_def":"The contractual sequence that determines the order and priority in which a private fund distributes cash proceeds among the general partner and limited partners."},{"slug":"dpi","term":"Distributions to Paid-In","abbrev":"DPI","grp":"Private Markets","short_def":"A private-fund metric expressing the ratio of cumulative cash distributions returned to investors divided by the total capital they have paid in."},{"slug":"dapt","term":"Domestic Asset Protection Trust","abbrev":"DAPT","grp":"Trusts & Estate","short_def":"A trust established under specific state statutes where the person creating the trust can also be a beneficiary while still receiving some creditor protection."},{"slug":"domicile","term":"Domicile","abbrev":null,"grp":"Tax","short_def":"Domicile is the single jurisdiction a person treats as their permanent, true home — determined by both physical presence and demonstrated intent to remain indefinitely."},{"slug":"daf-term","term":"Donor-Advised Fund","abbrev":"DAF","grp":"Philanthropy","short_def":"A charitable giving account held at a sponsoring organization that allows a donor to contribute assets now, receive an immediate tax deduction, and recommend grants to charities over time."},{"slug":"drawdown","term":"Drawdown","abbrev":null,"grp":"Public Markets","short_def":"Drawdown is the peak-to-trough decline in the value of a portfolio or investment over a specific period, measuring how much was lost from a prior high before a recovery began."},{"slug":"drawdown-fund","term":"Drawdown Fund","abbrev":null,"grp":"Private Markets","short_def":"A private fund structure in which committed capital is called by the manager in stages as investments are made, rather than collected upfront in a lump sum."},{"slug":"dry-powder","term":"Dry Powder","abbrev":null,"grp":"Private Markets","short_def":"Capital that has been committed to a fund but not yet deployed into actual investments, held in reserve awaiting suitable opportunities."},{"slug":"dd-questionnaire","term":"Due Diligence Questionnaire","abbrev":"DDQ","grp":"Private Markets","short_def":"A standardized document that investment managers complete so allocators can systematically evaluate a firm's operations, risk controls, and investment process before committing capital."},{"slug":"duration","term":"Duration","abbrev":null,"grp":"Public Markets","short_def":"A measure of a bond's price sensitivity to interest-rate changes, expressed in years, indicating how much a bond's price will rise or fall when rates move."},{"slug":"dynasty-trust-term","term":"Dynasty Trust","abbrev":null,"grp":"Trusts & Estate","short_def":"A long-duration trust, often designed to last for multiple generations or indefinitely, structured to keep assets outside beneficiaries' taxable estates while providing for their needs."},{"slug":"estate-tax-term","term":"Estate Tax","abbrev":null,"grp":"Trusts & Estate","short_def":"A federal (and sometimes state) tax levied on the total value of a deceased person's taxable estate before assets are distributed to heirs."},{"slug":"estimated-tax","term":"Estimated Taxes","abbrev":null,"grp":"Tax","short_def":"Estimated taxes are quarterly payments made directly to tax authorities by individuals whose income is not fully covered by withholding, allowing tax obligations to be paid throughout the year rather than all at once."},{"slug":"evergreen-fund","term":"Evergreen Fund","abbrev":null,"grp":"Private Markets","short_def":"An open-ended private investment vehicle with no fixed termination date, allowing investors to subscribe and redeem periodically rather than committing capital for a defined multi-year term."},{"slug":"excess-liability","term":"Excess Liability","abbrev":null,"grp":"Banking & Insurance","short_def":"Insurance that provides additional coverage limits directly above a specific underlying policy, without necessarily broadening the categories of risk that policy covers."},{"slug":"exchange-fund-term","term":"Exchange Fund","abbrev":null,"grp":"Public Markets","short_def":"A private partnership that allows multiple investors to contribute appreciated shares and receive diversified fund interests in return, potentially deferring the capital-gains tax that an outright sale would trigger."},{"slug":"etf-term","term":"Exchange-Traded Fund","abbrev":"ETF","grp":"Public Markets","short_def":"An exchange-traded fund (ETF) is a pooled investment vehicle that holds a basket of securities and trades on a stock exchange throughout the day like a single share."},{"slug":"exit-tax","term":"Exit Tax","abbrev":null,"grp":"Tax","short_def":"An exit tax is a deemed-sale tax imposed when certain individuals relinquish U.S. citizenship or long-term permanent residency, treating their worldwide assets as if sold on the date of expatriation."},{"slug":"expenditure-responsibility","term":"Expenditure Responsibility","abbrev":null,"grp":"Philanthropy","short_def":"The oversight regime under U.S. tax law requiring private foundations to monitor, control, and report on grants made to organizations that are not public charities."},{"slug":"expense-ratio","term":"Expense Ratio","abbrev":null,"grp":"Public Markets","short_def":"An expense ratio is the annual cost of owning a fund, expressed as a percentage of assets, covering management fees and operating expenses charged directly against the fund's holdings."},{"slug":"international-reporting","term":"FBAR / FATCA / CRS","abbrev":null,"grp":"Tax","short_def":"FBAR, FATCA, and CRS are three overlapping international account-transparency regimes requiring disclosure of foreign financial accounts and assets to tax and regulatory authorities."},{"slug":"family-assembly","term":"Family Assembly","abbrev":null,"grp":"Family & Governance","short_def":"A formal, recurring gathering of all family members—across branches and generations—convened to discuss shared values, wealth matters, and collective decisions."},{"slug":"family-bank","term":"Family Bank","abbrev":null,"grp":"Family & Governance","short_def":"An internal lending structure through which a family provides loans to members for business ventures, education, or other purposes under formally documented terms."},{"slug":"family-constitution-term","term":"Family Constitution","abbrev":null,"grp":"Family & Governance","short_def":"A family constitution is a written document that articulates a family's shared values, governance structures, decision-making rules, and expectations for how wealth will be managed and transferred across generations."},{"slug":"family-council-term","term":"Family Council","abbrev":null,"grp":"Family & Governance","short_def":"A family council is a representative governing body composed of family members that provides a forum for collective decision-making, communication, and oversight of shared family affairs."},{"slug":"family-office-term","term":"Family Office","abbrev":null,"grp":"Family & Governance","short_def":"A family office is an organization — or coordinated set of services — dedicated to managing the financial, administrative, and sometimes personal affairs of one or more wealthy families."},{"slug":"fee-offset","term":"Fee Offset","abbrev":null,"grp":"Private Markets","short_def":"A contractual provision in private fund agreements that credits fees a fund manager earns from portfolio companies against the management fee charged to limited partners."},{"slug":"fiduciary-duty","term":"Fiduciary Duty","abbrev":null,"grp":"Trusts & Estate","short_def":"A legal and ethical obligation requiring one party to act solely in another's best interest, with loyalty and prudence, when entrusted with authority over that person's affairs or assets."},{"slug":"fraudulent-transfer","term":"Fraudulent Transfer","abbrev":null,"grp":"Trusts & Estate","short_def":"A transfer of assets made with intent to hinder, delay, or defraud creditors, which courts can reverse and return those assets to the creditor's reach."},{"slug":"catch-up","term":"GP Catch-Up","abbrev":null,"grp":"Private Markets","short_def":"A distribution tier in a private fund where the general partner receives a disproportionately large share of profits until it has caught up to its full carried-interest percentage."},{"slug":"gp-commitment","term":"GP Commitment","abbrev":null,"grp":"Private Markets","short_def":"A GP commitment is the amount of their own capital that a fund's general partner invests alongside limited partners, aligning the manager's financial interests with those of the investors they serve."},{"slug":"general-obligation-bond","term":"General Obligation Bond","abbrev":"GO","grp":"Public Markets","short_def":"A general obligation bond is a municipal debt security backed by the full taxing power of the issuing government, rather than by revenues from a specific project."},{"slug":"general-partner","term":"General Partner","abbrev":"GP","grp":"Private Markets","short_def":"The managing entity of a private fund — typically abbreviated GP — that makes investment decisions, bears legal responsibility for the partnership, and earns carried interest on profits."},{"slug":"gst-tax-term","term":"Generation-Skipping Transfer Tax","abbrev":"GST","grp":"Trusts & Estate","short_def":"The Generation-Skipping Transfer (GST) tax is an additional federal tax on transfers — by gift or at death — made to recipients who are two or more generations below the transferor, such as grandchildren."},{"slug":"gift-tax-term","term":"Gift Tax","abbrev":null,"grp":"Trusts & Estate","short_def":"A federal tax on transfers of property from one person to another during the giver's lifetime, designed to prevent avoidance of the estate tax through lifetime giving."},{"slug":"grantor","term":"Grantor (Settlor)","abbrev":null,"grp":"Trusts & Estate","short_def":"The individual who creates a trust, contributes assets to it, and establishes its terms — sometimes called the settlor or trustor."},{"slug":"grat-term","term":"Grantor Retained Annuity Trust","abbrev":"GRAT","grp":"Trusts & Estate","short_def":"An irrevocable trust in which the grantor receives fixed annuity payments for a set term, and any remaining assets pass to beneficiaries potentially free of gift tax."},{"slug":"grantor-trust-status","term":"Grantor Trust Status","abbrev":null,"grp":"Trusts & Estate","short_def":"A tax classification in which the person who created a trust — the grantor — is treated as the owner of trust assets for income-tax purposes and must report trust income on their personal return."},{"slug":"hems-standard","term":"HEMS Standard","abbrev":"HEMS","grp":"Trusts & Estate","short_def":"A trustee distribution standard limiting payouts to a beneficiary's health, education, maintenance, and support — an IRS-recognized phrase that also limits a beneficiary's creditor exposure."},{"slug":"high-yield","term":"High Yield","abbrev":null,"grp":"Public Markets","short_def":"High-yield bonds are debt securities rated below investment grade by credit-rating agencies, offering higher interest payments to compensate investors for greater default risk."},{"slug":"human-capital","term":"Human Capital of the Family","abbrev":null,"grp":"Family & Governance","short_def":"The collective knowledge, skills, health, relationships, and productive capacity of family members, viewed as a form of wealth alongside financial assets."},{"slug":"iso-exercise","term":"Incentive Stock Options","abbrev":"ISO","grp":"Tax","short_def":"A type of employee stock option that receives preferential tax treatment under federal law, with no ordinary income tax at exercise—but with potential Alternative Minimum Tax consequences."},{"slug":"idgt-term","term":"Intentionally Defective Grantor Trust","abbrev":"IDGT","grp":"Trusts & Estate","short_def":"An irrevocable trust deliberately structured so that assets leave the grantor's estate for transfer-tax purposes while the grantor remains responsible for paying income tax on trust earnings."},{"slug":"internal-rate-of-return","term":"Internal Rate of Return","abbrev":"IRR","grp":"Private Markets","short_def":"The annualized discount rate that makes a series of cash inflows and outflows break even in present value terms, commonly used to express private-fund performance."},{"slug":"interval-fund","term":"Interval Fund","abbrev":null,"grp":"Private Markets","short_def":"A registered investment fund that allows redemptions only during periodic windows—typically quarterly—rather than on demand, enabling the fund to hold less-liquid assets."},{"slug":"intestacy","term":"Intestacy","abbrev":null,"grp":"Trusts & Estate","short_def":"The legal condition of dying without a valid will, causing the state's default inheritance laws — not the deceased's wishes — to determine who receives the estate."},{"slug":"investment-committee-term","term":"Investment Committee","abbrev":null,"grp":"Family & Governance","short_def":"A formal body of individuals — family members, advisors, or both — given defined authority to make or oversee investment decisions on behalf of a family's wealth."},{"slug":"investment-grade","term":"Investment Grade","abbrev":"IG","grp":"Public Markets","short_def":"Investment grade (IG) describes bonds rated by recognized credit-rating agencies within the higher-quality tiers, indicating a relatively lower perceived risk of default compared with lower-rated bonds."},{"slug":"ips-term","term":"Investment Policy Statement","abbrev":"IPS","grp":"Family & Governance","short_def":"An investment policy statement is a written document that establishes a portfolio's objectives, risk parameters, asset allocation guidelines, and governance rules, serving as the governing framework for all investment decisions."},{"slug":"investor-control","term":"Investor Control Doctrine","abbrev":null,"grp":"Banking & Insurance","short_def":"A tax doctrine holding that if a life insurance policyholder exercises sufficient direct control over the specific assets inside the policy's separate account, the IRS may treat those assets as owned directly by the policyholder, eliminating the policy's tax benefits."},{"slug":"ilit","term":"Irrevocable Life Insurance Trust","abbrev":"ILIT","grp":"Trusts & Estate","short_def":"An irrevocable trust that owns a life insurance policy so that the death benefit is excluded from the insured's taxable estate."},{"slug":"irrevocable-trust-term","term":"Irrevocable Trust","abbrev":null,"grp":"Trusts & Estate","short_def":"A trust that, once established, generally cannot be changed or revoked by the grantor, trading control for potential tax and asset-protection benefits."},{"slug":"j-curve","term":"J-Curve","abbrev":null,"grp":"Private Markets","short_def":"The pattern in private fund investing where early cash outflows and fees produce negative returns before later gains push performance into positive territory."},{"slug":"key-person-provision","term":"Key-Person Provision","abbrev":null,"grp":"Private Markets","short_def":"A key-person provision is a fund clause that triggers a suspension of new investments — and potentially allows limited partners to exit — if specified senior investment professionals leave or reduce their involvement in managing the fund."},{"slug":"kyc","term":"Know Your Customer","abbrev":"KYC","grp":"Banking & Insurance","short_def":"A legally required process by which banks and financial institutions verify a customer's identity, source of wealth, and risk profile before and during an account relationship."},{"slug":"letter-of-wishes-term","term":"Letter of Wishes","abbrev":null,"grp":"Trusts & Estate","short_def":"A non-binding written document in which a person or trust settlor communicates personal preferences and context to trustees, without creating legal obligations."},{"slug":"lifetime-exemption","term":"Lifetime Exemption","abbrev":null,"grp":"Trusts & Estate","short_def":"The cumulative amount a person may transfer by gift during life or bequest at death — combined — before federal transfer taxes apply; the amount is set by law and subject to change."},{"slug":"limited-partner","term":"Limited Partner","abbrev":"LP","grp":"Private Markets","short_def":"A limited partner is an investor in a private fund who contributes capital, shares in profits and losses, and enjoys liability limited to their invested amount but has no role in managing the fund."},{"slug":"lpa","term":"Limited Partnership Agreement","abbrev":"LPA","grp":"Private Markets","short_def":"A Limited Partnership Agreement is the governing legal contract of a private fund that defines the rights, obligations, economics, and rules binding the general partner and all limited partners."},{"slug":"lock-up","term":"Lock-Up","abbrev":null,"grp":"Private Markets","short_def":"A defined period, stated in a fund's governing documents, during which an investor may not request any redemption of their capital."},{"slug":"carryforward","term":"Loss Carryforward","abbrev":null,"grp":"Tax","short_def":"An unused tax loss from one year that tax rules allow a taxpayer to apply against gains or income in a future tax year."},{"slug":"management-fee","term":"Management Fee","abbrev":null,"grp":"Private Markets","short_def":"An annual fee charged by a private fund manager, calculated as a percentage of committed or invested capital, covering the fund's operating costs."},{"slug":"margin-loan","term":"Margin Loan","abbrev":null,"grp":"Public Markets","short_def":"A margin loan is a loan from a broker-dealer to an account holder, secured by securities in a brokerage account and governed by federal margin regulations."},{"slug":"payout-requirement","term":"Minimum Distribution (Foundations)","abbrev":null,"grp":"Philanthropy","short_def":"The legal obligation requiring private foundations to distribute a minimum percentage of their assets annually for charitable purposes, as defined by federal tax law."},{"slug":"mri","term":"Mission-Related Investment","abbrev":"MRI","grp":"Philanthropy","short_def":"A mission-related investment is a market-rate or near-market-rate investment made from a foundation's endowment that is intentionally aligned with the foundation's charitable mission."},{"slug":"mfn-clause","term":"Most Favored Nation Clause","abbrev":"MFN","grp":"Private Markets","short_def":"A Most Favored Nation clause is a contractual right that entitles an investor to elect any more favorable terms granted to other investors in the same fund, preventing the manager from quietly giving better deals to select parties."},{"slug":"mfo","term":"Multi-Family Office","abbrev":"MFO","grp":"Family & Governance","short_def":"A multi-family office is a professional firm that delivers family-office-style services — investment oversight, tax coordination, estate planning support, and more — to several unrelated wealthy families on a shared-cost basis."},{"slug":"moic","term":"Multiple on Invested Capital","abbrev":"MOIC","grp":"Private Markets","short_def":"A simple ratio expressing total value returned or expected from an investment divided by the total capital invested, without regard to how long that took."},{"slug":"nav","term":"Net Asset Value","abbrev":"NAV","grp":"Private Markets","short_def":"Net Asset Value (NAV) is the estimated total value of a fund's or portfolio's assets minus its liabilities, representing the per-share or aggregate worth of an investor's holdings at a given point in time."},{"slug":"niit-term","term":"Net Investment Income Tax","abbrev":"NIIT","grp":"Tax","short_def":"A federal surtax applied to net investment income—such as interest, dividends, and capital gains—for taxpayers whose income exceeds certain thresholds."},{"slug":"ocio","term":"Outsourced Chief Investment Officer","abbrev":"OCIO","grp":"Family & Governance","short_def":"An Outsourced Chief Investment Officer (OCIO) is a firm or individual hired to assume day-to-day portfolio management responsibilities while the family retains governance oversight."},{"slug":"pass-through","term":"Pass-Through Entity","abbrev":null,"grp":"Tax","short_def":"A pass-through entity is a business structure that pays no federal income tax itself; instead, profits and losses flow to owners and are taxed on their personal returns."},{"slug":"pfic","term":"Passive Foreign Investment Company","abbrev":"PFIC","grp":"Tax","short_def":"A Passive Foreign Investment Company (PFIC) is a foreign corporation meeting certain income or asset tests, subject to a punitive U.S. tax regime when shares are held by U.S. persons."},{"slug":"portability","term":"Portability","abbrev":null,"grp":"Trusts & Estate","short_def":"A federal estate-tax rule allowing a surviving spouse to claim any unused portion of a deceased spouse's lifetime exemption, effectively combining both spouses' exemptions."},{"slug":"pour-over-will","term":"Pour-Over Will","abbrev":null,"grp":"Trusts & Estate","short_def":"A will that automatically directs any assets left outside a trust at death into that trust, ensuring the trust's terms govern their ultimate distribution."},{"slug":"power-of-appointment","term":"Power of Appointment","abbrev":null,"grp":"Trusts & Estate","short_def":"A legal right granted in a trust or will allowing a designated person to direct who ultimately receives specific property or trust assets."},{"slug":"preferred-return","term":"Preferred Return","abbrev":null,"grp":"Private Markets","short_def":"A minimum annual return that limited partners must receive on their capital before a fund manager begins earning carried interest, also called a hurdle rate."},{"slug":"premium-discount","term":"Premium / Discount to NAV","abbrev":null,"grp":"Public Markets","short_def":"Premium or discount to NAV describes whether a fund's market price trades above (premium) or below (discount) the per-share value of the assets it holds."},{"slug":"private-bank-term","term":"Private Bank","abbrev":null,"grp":"Banking & Insurance","short_def":"A financial institution or dedicated division of a larger bank that provides integrated banking, lending, investment, and advisory services exclusively to high-net-worth and ultra-high-net-worth clients."},{"slug":"private-foundation-term","term":"Private Foundation","abbrev":null,"grp":"Philanthropy","short_def":"A tax-exempt charitable organization established and controlled by a family or individual, funded by private contributions, and required by law to make annual grants to public charities or for charitable purposes."},{"slug":"ppli-term","term":"Private Placement Life Insurance","abbrev":"PPLI","grp":"Banking & Insurance","short_def":"Private Placement Life Insurance (PPLI) is a variable life insurance contract issued in a private, non-registered offering that allows the policyholder to allocate cash value among institutional investment options inside the policy's tax-advantaged wrapper."},{"slug":"ppm","term":"Private Placement Memorandum","abbrev":"PPM","grp":"Private Markets","short_def":"A Private Placement Memorandum (PPM) is the primary disclosure document for a privately offered security, describing the investment, its risks, terms, and the legal basis for the offering."},{"slug":"probate-term","term":"Probate","abbrev":null,"grp":"Trusts & Estate","short_def":"The court-supervised legal process by which a deceased person's will is validated, debts are settled, and remaining assets are distributed to heirs."},{"slug":"pri","term":"Program-Related Investment","abbrev":"PRI","grp":"Philanthropy","short_def":"A program-related investment is a foundation's concessionary loan, equity stake, or guarantee made primarily to advance charitable purposes rather than to generate market-rate financial returns."},{"slug":"protective-put","term":"Protective Put","abbrev":null,"grp":"Public Markets","short_def":"A protective put is an options contract purchased on a security already owned, granting the right to sell that security at a specified price, thereby limiting potential losses below that level."},{"slug":"pme","term":"Public Market Equivalent","abbrev":"PME","grp":"Private Markets","short_def":"A method of benchmarking a private fund's performance by replicating its cash flows in a public market index, enabling a like-for-like return comparison."},{"slug":"qprt-term","term":"Qualified Personal Residence Trust","abbrev":"QPRT","grp":"Trusts & Estate","short_def":"A trust into which a homeowner transfers a personal residence at a reduced gift-tax value, retaining the right to live there for a fixed number of years."},{"slug":"qualified-purchaser","term":"Qualified Purchaser","abbrev":"QP","grp":"Private Markets","short_def":"A higher securities-law eligibility tier, defined by a specified level of investable assets, that unlocks access to certain private funds not available to ordinary accredited investors."},{"slug":"qsbs-term","term":"Qualified Small Business Stock","abbrev":"QSBS","grp":"Tax","short_def":"Stock in a qualifying C-corporation that, if held long enough and meeting specific requirements, may allow shareholders to exclude a substantial portion of gain from federal tax."},{"slug":"rebalancing-term","term":"Rebalancing","abbrev":null,"grp":"Public Markets","short_def":"Rebalancing is the disciplined process of buying and selling portfolio holdings to restore the asset mix back to its original or target policy weights."},{"slug":"reciprocal-trust-doctrine","term":"Reciprocal Trust Doctrine","abbrev":null,"grp":"Trusts & Estate","short_def":"A legal rule that can cause courts to \"uncross\" two mirror-image trusts created by spouses or partners, effectively treating each grantor as owning their own trust's assets."},{"slug":"gate","term":"Redemption Gate","abbrev":null,"grp":"Private Markets","short_def":"A contractual provision in a fund's governing documents that limits the total percentage of investor capital that may be withdrawn during any single redemption period."},{"slug":"rvpi","term":"Residual Value to Paid-In","abbrev":"RVPI","grp":"Private Markets","short_def":"A private-fund metric expressing the ratio of the net asset value of unrealized investments still held by the fund to the total capital investors have paid in."},{"slug":"restricted-stock","term":"Restricted and Control Stock","abbrev":null,"grp":"Public Markets","short_def":"Shares of a company that cannot be freely sold or transferred until specific conditions — such as a vesting schedule or regulatory holding period — have been satisfied."},{"slug":"revenue-bond","term":"Revenue Bond","abbrev":null,"grp":"Public Markets","short_def":"A revenue bond is a municipal security whose principal and interest are repaid solely from the income generated by a specific project or facility, such as a toll road or hospital."},{"slug":"revocable-trust-term","term":"Revocable Trust","abbrev":null,"grp":"Trusts & Estate","short_def":"A legal arrangement in which the person who creates the trust retains full power to amend, revoke, or dissolve it at any time during their lifetime."},{"slug":"rule-144","term":"Rule 144","abbrev":null,"grp":"Public Markets","short_def":"An SEC safe-harbor rule that defines the specific conditions under which holders of restricted or control stock may sell those shares into the public market without triggering registration requirements."},{"slug":"rule-against-perpetuities","term":"Rule Against Perpetuities","abbrev":"RAP","grp":"Trusts & Estate","short_def":"A legal rule that historically limited how long a trust could hold property before it had to terminate and distribute assets to beneficiaries."},{"slug":"safe-harbor","term":"Safe Harbor (Estimated Tax)","abbrev":null,"grp":"Tax","short_def":"The estimated-tax safe harbor is a set of IRS rules under which a taxpayer avoids underpayment penalties if total estimated payments and withholding meet a specified minimum threshold, even if more tax is ultimately owed."},{"slug":"k-1","term":"Schedule K-1","abbrev":"K-1","grp":"Tax","short_def":"A Schedule K-1 is the annual tax form a partnership, S corporation, or trust issues to each owner, reporting that owner's share of income, deductions, and credits."},{"slug":"scheduled-valuables","term":"Scheduled Valuables","abbrev":null,"grp":"Banking & Insurance","short_def":"A policy endorsement or separate policy that lists specific high-value items — art, jewelry, watches, wine, collectibles — individually, each with its own coverage amount."},{"slug":"secondary-market","term":"Secondaries","abbrev":null,"grp":"Private Markets","short_def":"The purchase of an existing stake in a private fund or portfolio of fund stakes from another investor, rather than committing capital at the fund's original formation."},{"slug":"hurdle-rate-7520","term":"Section 7520 Rate","abbrev":null,"grp":"Trusts & Estate","short_def":"The Section 7520 rate is the IRS-published monthly interest rate used to value annuities, income interests, and remainder interests in trusts for gift and estate tax purposes."},{"slug":"basis-adjustment-754","term":"Section 754 Election","abbrev":null,"grp":"Tax","short_def":"A Section 754 election allows a partnership to adjust the tax basis of its assets when a partnership interest is sold or a partner dies, aligning inside basis with what the new partner actually paid."},{"slug":"securities-based-line","term":"Securities-Based Line of Credit","abbrev":"SBLOC","grp":"Public Markets","short_def":"A securities-based line of credit (SBLOC) is a revolving loan extended by a lender using a borrower's investment portfolio as collateral, outside the federal margin lending framework."},{"slug":"self-dealing","term":"Self-Dealing","abbrev":null,"grp":"Philanthropy","short_def":"A category of transactions between a private foundation and its disqualified persons — typically insiders — that federal law prohibits or strictly regulates to prevent self-enrichment."},{"slug":"self-insurance","term":"Self-Insurance","abbrev":null,"grp":"Banking & Insurance","short_def":"Self-insurance is the deliberate decision to retain a financial risk internally — absorbing potential losses from one's own resources — rather than transferring that risk to a commercial insurer."},{"slug":"separately-managed-account","term":"Separately Managed Account","abbrev":"SMA","grp":"Public Markets","short_def":"A separately managed account (SMA) is a professionally managed investment portfolio in which the client directly owns each individual security, rather than shares of a pooled fund."},{"slug":"sharpe-ratio","term":"Sharpe Ratio","abbrev":null,"grp":"Public Markets","short_def":"The Sharpe ratio measures the return an investment delivered above a risk-free rate, divided by the volatility of those returns, expressing how much reward was earned per unit of risk taken."},{"slug":"shirtsleeves","term":"Shirtsleeves to Shirtsleeves","abbrev":null,"grp":"Family & Governance","short_def":"A piece of multigenerational folklore warning that family wealth created in one generation is often dissipated by the third, expressed in similar sayings across many cultures."},{"slug":"side-letter","term":"Side Letter","abbrev":null,"grp":"Private Markets","short_def":"A side letter is a private bilateral agreement between a fund manager and a specific investor that grants that investor terms — such as fee discounts or reporting rights — beyond those in the standard fund agreement."},{"slug":"side-pocket","term":"Side Pocket","abbrev":null,"grp":"Private Markets","short_def":"A separate accounting sleeve within a fund that isolates a specific illiquid or hard-to-value investment from the main portfolio, limiting redemptions against that position."},{"slug":"sfo","term":"Single-Family Office","abbrev":"SFO","grp":"Family & Governance","short_def":"A single-family office is a private organization owned and operated by one family solely to manage that family's wealth, affairs, and legacy."},{"slug":"situs","term":"Situs","abbrev":null,"grp":"Trusts & Estate","short_def":"The legal jurisdiction — typically a U.S. state or foreign country — whose laws govern a trust's administration, validity, and taxation."},{"slug":"spendthrift-clause","term":"Spendthrift Clause","abbrev":null,"grp":"Trusts & Estate","short_def":"A trust provision that prevents a beneficiary from voluntarily transferring their interest and blocks creditors from reaching trust assets before a distribution is made."},{"slug":"slat-term","term":"Spousal Lifetime Access Trust","abbrev":"SLAT","grp":"Trusts & Estate","short_def":"An irrevocable trust funded by one spouse for the benefit of the other, allowing the gifting spouse to remove assets from their estate while retaining indirect access through the beneficiary spouse."},{"slug":"statutory-residency","term":"Statutory Residency","abbrev":null,"grp":"Tax","short_def":"Statutory residency is a legal status imposed by a state's tax code when a person meets a defined formula — typically days present plus a permanent place of abode — regardless of where they consider home."},{"slug":"step-up-in-basis","term":"Step-Up in Basis","abbrev":null,"grp":"Trusts & Estate","short_def":"A reset of an inherited asset's cost basis to its fair market value at the original owner's date of death, potentially eliminating capital gains tax on prior appreciation."},{"slug":"stewardship","term":"Stewardship","abbrev":null,"grp":"Family & Governance","short_def":"The philosophy that current holders of family wealth are caretakers of resources intended to benefit future generations, not simply owners free to consume them."},{"slug":"structured-note","term":"Structured Note","abbrev":null,"grp":"Public Markets","short_def":"A structured note is a debt security issued by a financial institution whose repayment terms are linked to the performance of an underlying asset, index, or formula rather than a fixed interest rate."},{"slug":"subscription-line","term":"Subscription Credit Line","abbrev":null,"grp":"Private Markets","short_def":"A short-term credit facility borrowed by a private fund against investors' unfunded commitments, used to deploy capital quickly before formal capital calls are issued to investors."},{"slug":"tax-equivalent-yield","term":"Tax-Equivalent Yield","abbrev":"TEY","grp":"Public Markets","short_def":"Tax-equivalent yield is the pretax return a taxable bond must offer to produce the same after-tax income as a tax-exempt bond for an investor at a given tax rate."},{"slug":"tax-loss-harvesting-term","term":"Tax-Loss Harvesting","abbrev":"TLH","grp":"Public Markets","short_def":"Tax-loss harvesting (TLH) is the practice of selling a security at a loss to generate a realized capital loss that can offset taxable capital gains or, within limits, ordinary income."},{"slug":"tvpi","term":"Total Value to Paid-In","abbrev":"TVPI","grp":"Private Markets","short_def":"A private-fund performance ratio calculated by dividing the sum of all distributions and remaining net asset value by the total capital investors have contributed."},{"slug":"treasury-bill","term":"Treasury Bill","abbrev":"T-bill","grp":"Public Markets","short_def":"A Treasury bill is a short-term U.S. government debt obligation, maturing in one year or less, sold at a discount to face value and redeemed at full face value at maturity."},{"slug":"tips","term":"Treasury Inflation-Protected Securities","abbrev":"TIPS","grp":"Public Markets","short_def":"Treasury Inflation-Protected Securities are U.S. government bonds whose principal value is adjusted periodically in line with a government inflation index, protecting purchasing power over time."},{"slug":"trust-protector","term":"Trust Protector","abbrev":null,"grp":"Trusts & Estate","short_def":"A person or entity appointed in a trust document with defined powers to oversee, modify, or intervene in the trust's administration independently of the trustee."},{"slug":"trustee","term":"Trustee","abbrev":null,"grp":"Trusts & Estate","short_def":"The individual or institution legally responsible for holding, managing, and distributing trust assets according to the trust document and applicable law."},{"slug":"umbrella-policy","term":"Umbrella Liability Policy","abbrev":null,"grp":"Banking & Insurance","short_def":"A personal liability insurance policy that pays claims exceeding the limits of underlying home, auto, or other primary policies, up to a much higher ceiling."},{"slug":"ubti","term":"Unrelated Business Taxable Income","abbrev":"UBTI","grp":"Tax","short_def":"Unrelated Business Taxable Income (UBTI) is income earned by a tax-exempt account — such as an IRA or charitable trust — from an active business or debt-financed investment, potentially triggering a tax bill inside that account."},{"slug":"vintage-year","term":"Vintage Year","abbrev":null,"grp":"Private Markets","short_def":"The calendar year in which a private fund begins making its first investments or drawing capital from investors, used as the primary basis for comparing fund performance fairly."},{"slug":"vfo","term":"Virtual Family Office","abbrev":"VFO","grp":"Family & Governance","short_def":"A virtual family office is a coordinated network of independent, outside specialists — attorneys, investment advisers, accountants, and others — organized to function collectively like a family office without a shared physical location or employed staff."},{"slug":"volatility","term":"Volatility","abbrev":null,"grp":"Public Markets","short_def":"Volatility measures how widely and rapidly an investment's returns fluctuate over time, most commonly expressed as the annualized standard deviation of those returns."},{"slug":"wash-sale","term":"Wash Sale","abbrev":null,"grp":"Public Markets","short_def":"A wash sale occurs when an investor sells a security at a loss and repurchases the same or a substantially identical security within thirty days before or after the sale, disallowing the tax loss."},{"slug":"yield-curve","term":"Yield Curve","abbrev":null,"grp":"Public Markets","short_def":"The yield curve is a visual representation of the interest rates available on bonds of the same credit quality across a range of maturities, from short-term to long-term."},{"slug":"yield-to-maturity","term":"Yield to Maturity","abbrev":"YTM","grp":"Public Markets","short_def":"Yield to maturity (YTM) is the total annualized return a bond investor would earn if the bond is held until it matures and every promised payment is made on time and in full."}],"meta":{"count":180,"served_from":"site cache (no live upstream calls)","as_of":"2026-08-26T14:40:29+00:00","disclaimer":"Education and information only — never individualized investment, legal, tax, or insurance advice. Market quotes are delayed/indicative.","attribution":"Market data via Financial Modeling Prep (delayed); yields from official sources via FRED. Editorial content © UHNW Global."}}