Glossary entry

English term or phrase:

profitable exit

English answer:

"exit" means to recover invested capital (ie cash out), hopefully profitably

Added to glossary by Charlesp
Aug 30, 2005 10:14
19 yrs ago
English term

Profitable exits

English Bus/Financial Business/Commerce (general) Brochure
As the Asian private equity capital pool soars past US$120 billion and profitable exits become the norm not the exception
Change log

Aug 30, 2005 10:31: Steffen Walter changed "Level" from "Non-PRO" to "PRO"

Responses

+4
26 mins
Selected

"exit" to recover invested capital (ie cash out)

In this context, "profitable exits" means that those investing venture capital (or otherwise (seed captial, other equity capital)) before a company is taken public, are now able to recover their initial invested capital and take a profit too.
Peer comment(s):

agree Alex Crichton
10 mins
thanks!
agree Robert Donahue (X)
16 mins
thanks!
agree jennifer newsome (X)
3 hrs
thanks!
agree zax : to exit profitably
21 hrs
thanks!
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4 KudoZ points awarded for this answer. Comment: "Thaks!"
+2
12 mins

selling (shares) at a profit

I think this means that the investors are making money by selling their shares, i.e. not at a loss. :-)

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Note added at 15 mins (2005-08-30 10:29:20 GMT)
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I'm not going to change it quite yet, but I really don't think this is a "non-pro" question.

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Note added at 19 mins (2005-08-30 10:33:45 GMT)
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In fact, it might not be ethical for me to change it, seeing as how I proposed an answer - so I invite those who agree with me (as far as the characterization of the question is concerned) and who are able to change this question to "pro".
:-)
Peer comment(s):

agree Steffen Walter : Done.
10 mins
neutral Charlesp : I would think that the use of the word "exit" here means that this is equity invested prior to an exchange listing. So it is not just selling shares, but rather an equity interest taken prior to the company going public.
17 mins
I suppose you could be right (I wasn't so sure, myself). :-)
agree jennifer newsome (X)
1 day 1 hr
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24 mins

company sales or initial public offerings

Fund size will continue to fall, Greeley and others predict, as deals shrink and profitable "exits" (company sales or initial public offerings) continue to come in much smaller packages than they did in the boom times.
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