Glossary - Alternative Investments

The world of alternative investments includes professional terms that are worth knowing about any investment.

We have compiled the key terms for you.

Glossary

GP (General Partner)

general partner; the fund manager.

LP (Limited Partner)

limited partner; investor in a fund.

NOI (Net Operating Income)

The total actual rental income, net of operating expenses and before financing expenses (equivalent to operating profit in standard corporate accounting).

Cap Rate

a property’s potential capitalization rate, which derives from numerous economic factors such as rents, prices of similar properties, interest rates in the market, etc., and usually relates to income-generating properties. The CAP rate is calculated by dividing the NOI by the property’s current value.

LTV (Loan to value)

The ratio between the loan sum and the property’s total value.

Exit Cap Rate

The reduction in the capitalization rate applied at the time of property disposition
GP (General Partner)
general partner; the fund manager.
LP (Limited Partner)
limited partner; investor in a fund.
NOI (Net Operating Income)
The total actual rental income, net of operating expenses and before financing expenses (equivalent to operating profit in standard corporate accounting).
Legal notes

The alternative investment market carries with it opportunities but also risks, which must be taken into account when making an investment, such as: market risks, including exposure to foreign exchange, interest rates and global markets, operational risks, regulatory risks, limited liquidity risk and risk of complexity and limited transparency of the transactions.

 

The above information is concise and partial only, and is intended to provide a general overview of certain concepts in the field of alternative investments and therefore does not claim to be comprehensive and comprehensive, and should not be considered an exhaustive review of the field and/or the risks involved in it. The above does not constitute professional and/or legal advice and/or an interpretation and/or a complete review of the provisions of the law. When making an investment decision, the investor must rely on an examination carried out solely by him regarding the transaction and its terms, including the advantages and risks involved in the transaction, and must carefully review all documents relevant to the transaction, as well as consult with his professional advisors as necessary. Before the investment. The investment offer in Altshuler Shaham Alternative Investments transactions to investors from the State of Israel is based on an exemption under the Securities Law, 5728 - 1968 ("Securities Law"), which states that an offer and sale to up to 35 investors in any 12-month period (as specified in Section 15A(a)(1) of the Securities Law and its regulations) who are not listed in the First Schedule to the Securities Law or to investors as stated in Section 15A(a)(7) of the Securities Law and its regulations does not require the publication of a prospectus whose publication the Securities Authority has approved. In light of the above, the investment is not regulated under the Securities Law and/or under the provisions of the Joint Investments in Trust Law, 5754-1994. The investment and any advertising material regarding it have not been approved by the Israel Securities Authority. The above does not constitute investment advice pursuant to the Law on the Regulation of the Practice of Investment Consulting, Investment Marketing and Investment Portfolio Management, 5755-1995 (the "Practice Regulation Law"). Altshuler Shaham Alternative Investments, as well as its advisors and those acting on its behalf (a) are not authorized to provide investment advice or portfolio management pursuant to the Practice Regulation Law; (b) are not licensed under this Law; and (c) are not insured pursuant to the provisions of the Practice Regulation Law. Any advertising information provided, as well as any information that will be provided regarding an investment option as part of a future offering, will not constitute investment advice or investment marketing as defined in the Practice Regulation Law. It is clarified that the above does not constitute a commitment to any return on investment funds. The use of the above information is at the sole responsibility of the user. The above information is current as of April 2025

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