New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 16 - RULES OF THE STATE INVESTMENT COUNCIL › Subchapter 90 - PRIVATE EQUITY › Section 17:16-90.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, as used in this subchapter,
				  shall have the following meanings, unless the context clearly indicates
				  otherwise:
"Co-investment" means two parties (usually the limited
				  partner and the general partner of a fund) invest alongside each other in the
				  same company. If an investor in a fund has co-investment rights, it can invest
				  directly in a company that is also backed by the fund. The investor therefore
				  ends up with two separate stakes in the company - one indirectly through the
				  fund; one directly in the company. Co-investment may also include multiple
				  like-minded institutional investors investing in a specific company or
				  portfolio.
"Commingled fund" means all open-end and closed-end pooled
				  investment vehicles. A commingled fund may be organized as a group trust,
				  partnership, limited liability company, corporation, insurance company separate
				  account, or other multiple ownership entity. An investment in a commingled fund
				  may take the form of an investment in the fund or in the trustee, general
				  partner, or other managing member of such fund.
"Common stock" means shares of stock, other than preferred
				  stock, representing ownership in a corporation or other form of legal
				  entity.
"Convertible debt issue" means a debt obligation of any
				  corporation or other form of legal entity that is convertible into the common
				  stock of the entity.
"Convertible preferred stock" means preferred stock of any
				  corporation or other form of legal entity that is convertible into the common
				  stock of the entity.
"Debt related investment" means the purchase of investments
				  in debt instruments which may include equity participation.
"Direct investment" means the purchase of an interest in a
				  company or venture directly by an eligible fund, rather than through an
				  investment vehicle.
"Exchange-traded funds" means funds that invest in underlying
				  securities that track a predetermined index or strategy, a commodity, or a
				  basket of assets, and whose shares can be traded like shares of common
				  stock.
"Funds-of-funds" means funds set up to distribute investments
				  among a selection of fund managers, who in turn invest the capital
				  directly.
"Joint venture" means a contractual agreement joining two or
				  more parties for the purpose of executing a particular undertaking. All parties
				  agree to share in the profits and losses of the enterprise. Joint ventures are
				  usually private.
"Preferred stock" means shares of stock which provide a
				  dividend that is paid before any dividends are paid to holders of common stock
				  and additional rights above and beyond those conferred by common stock.
"Private equity" means investments generally made through
				  limited partnerships or other limited liability vehicles that in turn generally
				  invest in the equity or debt of companies or business units, or investments in
				  the debt or equity of a trustee, general partner, or managing member of a
				  fund.
"Private placement" means a negotiated sale in which the
				  securities are sold directly to institutional or private investors, rather than
				  through a public offering registered with the U.S. Securities and Exchange
				  Commission or applicable foreign regulatory body. Private placement includes
				  the sale of securities pursuant to Section 4(2), Regulation D, Regulation S, or
				  Rule 144A under the Securities Act of 1933, as amended.
"Separate account" means an investment vehicle with a single
				  investor that is unaffiliated with its sponsor or manager.