The value of a fund's or vehicle's assets minus its liabilities, often expressed per unit; the basis for pricing entries and redemptions in open-ended vehicles.
Related terms
- Net initial yield
First-year NOI as a percentage of the total purchase price including costs.
- Net operating income (NOI)
Property income after operating expenses but before financing and tax.
- Net present value (NPV)
The value today of a stream of future cash flows discounted at a required rate of return.
- Open-ended fund
A fund with no fixed end date that continually accepts new capital and allows redemptions, typically holding stabilised income-producing assets and priced off…
- Opportunistic
A high-risk strategy involving development, distress, or major repositioning for outsized returns.
- Preferred return (pref)
A minimum annual return — commonly 6–8% in Gulf and African deals — that LPs must earn on their capital before the sponsor shares in profits; can be cumulative…
- Profit on cost
Development profit expressed as a percentage of total project cost; a headline appraisal metric developers in Egypt and the Gulf use to test a scheme's viabili…
- Promote / carried interest
The sponsor's outsized share of profits above the hurdle (often 20%), earned for generating returns rather than for contributing capital; the GP's main upside.