The rise of private equity funds in China has become a fact, so it is particularly important to properly supervise private equity funds. Here's how to supervise private equity funds raised in Bian Xiao. Welcome to read and share. I hope you will like it.
How to supervise private equity funds
(1) The China Securities Regulatory Commission and its dispatched offices shall conduct statistical monitoring and inspection on the private equity business conducted by private equity fund managers and other relevant institutions according to law;
According to the provisions of Article 114th of the Securities Investment Fund Law, seven relevant measures have been taken:
1. Conduct on-site inspection on fund managers, fund custodians and fund service institutions, and require them to submit relevant business materials;
2. Enter the place where the suspected illegal act occurred for investigation and evidence collection;
3, ask the parties and the units and individuals related to the investigation, and ask them to explain the matters related to the investigation;
4, consult and copy the information related to the event under investigation, such as property registration, communication records, etc.
5. Consult and copy the securities trading records, registration and transfer records, financial and accounting materials and other relevant documents and materials of the parties and the units and individuals related to the investigated events; Documents and materials that may be transferred, concealed or damaged may be sealed up;
6. Inquire about the capital accounts, securities accounts and bank accounts of the parties and the units and individuals related to the investigated events; If there is evidence that illegal funds, securities and other property involved have been or may be transferred or concealed, or important evidence has been concealed, forged or destroyed, it may be frozen and sealed up with the approval of the principal responsible person of the securities regulatory agency in the State Council;
7. When investigating major securities violations such as manipulation of the securities market and insider trading, with the approval of the main person in charge of the the State Council securities regulatory agency, the securities trading of the parties involved in the investigated event may be restricted, but the restriction period shall not exceed fifteen trading days; If the case is complicated, it may be extended for fifteen trading days.
(two) the China Securities Regulatory Commission will record the integrity information of private fund managers and their employees in the integrity file database of the securities and futures market; According to the credit status of private fund managers, differentiated supervision is implemented.
(3) If relevant institutions such as private fund managers and their employees violate laws, administrative regulations and the Interim Measures for the Supervision and Administration of Private Investment Funds, the China Securities Regulatory Commission and its dispatched offices may take administrative supervision measures such as ordering corrections, supervising talks, issuing warning letters, and publicly condemning them; To impose administrative punishment on the parties who should be given administrative punishment according to law.
Basic ways to obtain private equity funds
High-net-worth individual investors: Private equity funds usually require investors to have certain financial strength and net assets requirements, so high-net-worth individuals are the main way to obtain them. These individual investors can directly apply to the private equity fund manager to purchase fund shares.
Institutional investors: including banks, insurance companies, pension funds, investment institutions, etc. Institutional investors usually have large capital scale and professional investment teams, so they are important investors in private equity funds.
Professional investors: such as foundations, charities, family offices, etc. These professional investors have a high understanding and demand for venture capital and long-term income, so they are potential investors of private equity funds.
Private equity funds have the following functions.
Diversified investment: Private equity funds can invest in different types of assets, such as stocks, bonds, real estate, private equity, futures and so on. To realize the diversification of the investment portfolio. By diversifying investment, the risk of specific investment targets is reduced, and the income and stability of the overall portfolio are improved.
Professional investment management: Senior fund managers are responsible for investment decision-making and fund management of private equity funds. Through in-depth research and analysis of the market, they choose potential investment targets and conduct trading operations in a timely manner according to market conditions in order to obtain excess returns.
Investment channels for high-net-worth investors: Private equity funds are usually geared to high-net-worth investors or institutional investors, providing them with more high-risk and high-yield investment opportunities. These investors can further diversify their risks through private equity funds and get higher return on investment.
Risk management: fund managers of private equity funds will actively manage the portfolio and take risk control measures to reduce the downside risk of the portfolio. They can adjust their positions in time according to market changes and adopt appropriate hedging or protection strategies to reduce the impact of market fluctuations on their portfolios.
What is the relationship between private equity fund and fund?
Private placement fund is a special fund type. Fund is a broad concept, including Public Offering of Fund and private equity funds. Public offering fund is an investment tool to raise funds from the public and sell fund shares to investors. On the other hand, private equity funds raise funds from a limited number of specific investors through the invitation system. Private equity fund is a special fund form, which has relatively high flexibility and professionalism and is oriented to specific investors.
Although private equity funds belong to the category of funds, they are quite different from Public Offering of Fund in terms of raising methods, investment strategies, product types and investor suitability requirements.