Capital preservation
Capital preservation is an objective focused on limiting loss of principal. It does not remove risk or assure that principal will be returned.
Why it matters to a capital raiser
I do not describe an investment as preserving capital without explaining the risks and structure.
Related terms
- Risk disclosure
- Preferred return
A term can mean something different in a particular deal, so read it with the governing documents. General education only. Not legal, tax or investment advice.