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Dictionary by pitch.dog
Term-sheet economics · Working

Pari passu

Also called: equal ranking

ELI5

Holders rank equally.

Used in conversation

“Series A and Series B are pari passu in the exit waterfall.”

Definition

A ranking in which specified securities or claims share equally at the same level of priority.

Here “Pari passu” means: A ranking in which specified securities or claims share equally at the same level of priority.

Pitch context

You will see “Pari passu” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches term-sheet economics.

Why it matters: In term-sheet economics, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.