Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Hurdle Rate

Definition

A minimum rate of return required before an investor will make an investment.

See Also

Private equity group, return on investment, venture capital.

Tips

Typical hurdle rates by equity and debt investors are simple to anticipate and fall along a continuum based on the level of risk that is being assumed and are as follows: banks 5%, mezzanine 21%, private equity 30%, venture capital 37.5%, factoring 41.8%. Source: Pepperdine Private Capital Market Line Survey.