Roll-Up

roll-up

A master limited partnership in which a number of existing limited partnerships are pooled into a single partnership.

---

Roll-Up

1. In venture capital and hedge funds, the purchase and merging of two or (often) more small firms in the same sector. This is done to hedge risk; given the choice between two firms in which to invest, one more risky than the other, a fund or venture capital firm may simply buy out them both and force a merger, hoping to split the difference in risk and return. Roll ups become more common in times of economic downturn as part of a market consolidation process.

2. To liquidate one option in order to buy a similar one with a better strike price. Most often, rolling up refers to an investor who wishes to maintain a position when he/she is bullish on the price of the underlying. See also: Roll Down.