Building Research Establishment Environmental Assessment Method: UK standard for grading a building’s sustainability performance.

Specialist lender providing short-term “bridging” finance until longer-term funding or a liquidity event occurs.

Build to Rent: development strategy where residential units are built for long-term rental rather than sale.

Capitalisation Rate: net operating income divided by asset value; a quick yield measure for income-producing property.

Chief Investment Officer: senior executive responsible for setting investment strategy, asset allocation and risk oversight.

Direct investment made alongside a lead sponsor or fund manager into a single deal, usually with lower fees and greater transparency.

Legal agreements extending a contractor’s or consultant’s duty of care to third parties such as funders or purchasers.

Tangible “passion assets” such as art, wine or classic cars that may appreciate but are typically illiquid and difficult to value.

The fixed annual interest rate paid on a bond or loan, expressed as a percentage of face value.

Binding conditions in a finance agreement that the borrower must observe (e.g., LTV limits, information provision).

Commission de Surveillance du Secteur Financier: Luxembourg’s main financial-markets regulator overseeing professionals, funds and other products.

Regulated institution that safeguards clients’ securities and handles settlement and corporate-action processing.

Secured debt instrument granting the lender a charge - often floating - over a company’s assets.

Legal instrument that formally binds a new party to an existing agreement’s terms.

Document that sets the repayment order among multiple lenders or creditors.

Failure to meet contractual obligations - such as interest or principal payments - triggering lender remedies and/or enforcement.

All hard and soft costs of delivering a project, including land, construction, professional fees and finance charges.

Loan facility specifically designed to fund construction or property-development expenditure.

Discretionary Fund Manager: regulated firm that builds and runs model portfolios on a client’s behalf.

An investment portfolio managed within agreed objectives without requiring trade-by-trade approvals.

Debt Service Coverage Ratio: net operating income divided by total debt service costs.

Comprehensive investigation of a prospective investment’s financials, operations, legal position and risks prior to commitment.

Earnings Before Interest, Taxes, Depreciation and Amortisation: proxy for operating cash flow often used in credit covenants.

Enterprise Investment Scheme: UK tax-advantaged programme incentivising investment into early-stage companies via tax breaks.

Short-term loan instrument issued to meet urgent liquidity needs.

Energy Performance Certificate: official rating of a building’s energy efficiency required on construction or sale.

Investments where your capital buys an ownership stake in a project or company, typically giving capital, income and voting rights.

Environmental, Social and Governance: non-financial criteria for assessing sustainability and ethical impact.

You instruct trades yourself; Falco provides no personalised advice or suitability assessment.

Fee payable on the repayment or early repayment of a loan or investment.

Private advisory firm that manages the wealth, investments and lifestyle needs of one or more affluent families, often spanning multiple generations.

Financial Conduct Authority: UK regulator overseeing conduct and prudential standards in financial markets.

Financial Services Compensation Scheme: statutory fund that protects eligible investors if a regulated firm fails.

Gross Development Value: estimated total sale value of a completed property development.

General Partner: managing partner of a partnership who makes investment decisions and bears unlimited liability.

Annual gross income divided by the asset’s purchase cost, shown as a percentage and before expenses.

Individuals who meet FCA thresholds (e.g., £100 k income or £250 k net assets) and can access restricted products.

Investment not covered by the FSCS or comparable compensation schemes. These products receive limited regulatory oversight and carry a realistic possibility of total capital loss.

High-Net-Worth: individual with ≥ £100 k annual income or ≥ £250 k net assets under FCA rules.

Innovative Finance ISA: UK tax-free wrapper allowing returns from eligible peer-to-peer and private-debt investments.

Agreement that sets ranking, voting rights and enforcement powers among multiple lenders in a capital stack.

Legal wrapper - such as a company, LLP, fund or trust - used to hold and manage specific investments.

Falco users must self-certify as High Net-Worth or Sophisticated, acknowledging higher risk and fewer regulatory protections.

Internal Rate of Return: annualised discount rate at which the net present value of future cash flows equals zero.

Individual Savings Account: UK tax-exempt savings wrapper for cash, stocks and shares or innovative-finance products.

Joint Contracts Tribunal: standard UK construction contract allocating rights and risk among parties.

Lender whose facility ranks behind senior debt in priority of payment (subordinated, junior or mezzanine debt).

Know Your Customer: mandatory identity-verification process before onboarding a client.

Assets readily convertible to cash at stable prices - e.g., listed equities, gilts, or money-market funds.

Formal promissory note documenting the terms, interest rate and maturity of a private loan.

Limited Partner: investor in a private fund whose liability is limited to its committed capital.

Loan-to-Gross Development Value: loan amount as a percentage of projected GDV on completion.

Loan-to-Value: loan amount expressed as a percentage of the appraised market value of the collateral asset.

Interest amount, expressed in basis points or percentage, that a borrower pays above a benchmark rate such as SONIA.

Subordinated debt that ranks between senior secured debt and equity, usually carrying higher interest and, possibly, warrants.

Fee paid to a surveyor or monitoring agent for tracking project milestones and drawdown compliance.

Diversified strategy allocating capital across several asset classes (equity, fixed income, real estate, etc.).

Net Asset Value: fair value of a fund’s assets minus liabilities.

First year’s net rental income (after non-recoverable costs) divided by purchase price, expressed as a percentage.

Total return after fees, expenses and tax, shown as a percentage of invested capital.

Net Initial Yield: first-year net rental income (after irrecoverable costs) divided by purchase price, adjusted for purchase costs and expressed as a percentage.

Net Operating Income: rental income minus operating expenses (excluding interest, tax, depreciation and amortisation).

Common shares conferring voting rights and proportionate participation in dividends and capital growth.

Purpose-Built Student Accommodation: residential property specifically designed to house students.

Commitment of funds to an investment opportunity during its fundraising period.

Project Monitoring Surveyor: independent surveyor engaged to report on cost, quality and programme during a development.

Stage at which construction is certified as complete and fit for occupation or sale.

Packaged Retail and Insurance-based Investment Products: EU/UK disclosure regime requiring a Key Information Document.

Original capital sum invested or loaned, excluding any interest, fees or gains.

Investment in non-listed assets - private equity, private credit or direct real estate - often illiquid and complex.

Costs paid to external experts such as solicitors, architects, engineers and surveyors.

Performance-based share of project profits allocated to the arranger, developer or sponsor after investors achieve preferred returns.

Formal property valuation prepared under RICS “Red Book” standards, ensuring consistency and regulatory compliance.

Real Estate Investment Trust: tax-efficient vehicle that owns or finances income-producing real estate.

Advisory service covering tax, legal and logistical aspects of changing residency or domicile for individuals or families.

Return on Equity: net profit attributable to shareholders divided by the equity invested.

Return on Investment: total profit - or loss - expressed as a percentage of the capital invested.

Stamp Duty Land Tax: a UK transfer tax paid by the purchaser on the acquisition of land and property.

Structure where an independent trustee holds security on behalf of multiple investors or noteholders.

Seed Enterprise Investment Scheme: UK tax relief programme for investing in very early-stage companies.

Debt that ranks first for repayment and is secured by primary/first charge security over borrower assets.

Contract setting out rights, obligations and dispute-resolution mechanisms among company shareholders.

Loan from a shareholder to the company, typically subordinated to external senior debt.

Société d’Investissement à Capital Variable – Specialised Investment Fund: a flexible, open-ended fund structure in Luxembourg designed for professional/institutional investors.

Self-Invested Personal Pension: UK pension wrapper giving individuals control over investment selection.

Small and Medium Enterprise: business meeting size thresholds, often reliant on private capital.

Sterling Overnight Index Average: benchmark overnight rate for unsecured sterling transactions.

Investors with demonstrable experience or knowledge enabling them to assess complex or high-risk offerings.

Special Purpose Acquisition Company: listed shell that raises capital to acquire a private business.

Entity responsible for originating, capitalising and managing an investment or development project.

Special Purpose Vehicle: bankruptcy-remote company created to hold a specific asset or project.

Small Self-Administered Scheme: an employer-sponsored UK pension (usually < 12 members) giving business owners discretion over how funds are invested.

Parties with a material interest in a venture’s success, including investors, employees, lenders, customers, regulators and the wider community.

Pre-packaged investment combining debt and derivatives to deliver predefined payoff features such as capital protection or geared returns.

Debt that ranks behind senior obligations and is repaid only after higher-priority creditors are satisfied.

Agreement under which a creditor accepts contractually a lower ranking to another creditor.

Preparing the orderly transfer of wealth, control and responsibilities to the next generation while minimising tax and conflict.

External fund or asset managers appointed to deploy and oversee capital on investors’ behalf.

Undertakings for Collective Investment in Transferable Securities: an EU fund framework that allows regulated, cross-border distribution to retail investors.

Venture Capital Trust: a UK-listed closed-end fund that invests in early-stage companies and offers investors valuable income-tax reliefs.

Equity financing for companies, often early-stage and/or high-growth offering high return potential alongside elevated risk.

Prescribed hierarchy dictating the order and proportion in which cashflows or profits are distributed among stakeholders.

Integrated service combining financial planning, investment management and tax guidance to grow and protect client wealth.

Annual income (interest or dividends) divided by cost or current market value, stated as a percentage.