What are the benefits of real-time private placement of stocks? Why do so many people choose to buy in real time? What does this mean for us? The following are the functions of private equity funds brought by Bian Xiao, hoping to help you to some extent.
What is the function of private equity fund?
Private equity fund is a kind of non-public offering fund, which is specially for a limited group of investors. Private equity funds are mainly composed of professional fund managers, who collect investors' funds and conduct paid investment management with the goal of gaining capital appreciation.
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.
What retail investors need to know to get started with stocks.
The stock market is generally divided into three categories: the school of capital flow, the school of chart technology and the school of fundamental analysis, which can be divided into macro analysis and micro analysis. The characteristics of the capital school are to trade specifically for the flow of the main capital in the market, and to make stocks wherever the capital flows; The characteristic of chart technology school is to study the K-line chart of stocks to trade; Fundamental analysis school is characterized by long holding period of traders, which is more suitable for long-term investors and not suitable for short-term speculators.
What can private equity investment do better?
Step 1: preliminary analysis
The purpose of the preliminary analysis is to establish the trust relationship between the company management team and the investment team of the fund management company. At this stage, the nature of the information exchanged between the two sides is very different. The investment team needs a lot of working meetings, presentations, information exchange and analysis of the company's situation, and even needs to visit the company one or more times.
Step 2: Initial valuation
In the process of valuation, the team needs to determine the price range of the company's acquisition according to the analysis results of the first step, that is, the lower limit and upper limit of the company's acquisition price.
Step 3: Due diligence and negotiation
After the two parties reach a basic agreement on the decisive characteristics, price range and main governance mechanism of the company or assets, the buyer company can conduct a comprehensive due diligence to further narrow the valuation range to a specific figure to accurately reflect the actual situation of the company or assets.
Step 4: Structural design
How many shares the management team owns in the company and the ratio with other shareholders need to be reasonably designed. The design of ownership structure should not only urge employees to reach and eventually surpass the company's established goals, but also meet the best interests of investors.
Step 5: Supplementary due diligence
Generally speaking, supplementary due diligence includes financial, environmental, social and tax audits.
Step 6: The two parties make a deal.
If the early stage goes smoothly, we can formally trade and establish the cooperative relationship between the two sides at this stage.
The establishment process of private equity fund companies
1. Pre-approval and registration of online names of enterprises
2. Received the notice of pre-approval of enterprise name.
3. Go through the investment procedures.
4. Check the capital.
Step 5 register
6. Obtain a business license
7. Apply for the organization code certificate.
8. Apply for tax registration certificate.
9. Open basic households
10, appropriation