What is the use of private equity funds? In the real society, everyone knows that it is very important for a company to own equity, and often private equity funds cannot publicly announce the raised funds. The following is an understanding of the use of private equity funds.

What is the use of private equity funds 1 What is a private equity fund?

Private placement fund (hereinafter referred to as private placement fund) refers to an investment fund established by raising funds from investors in a non-public way.

The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts.

What are the main types of private equity funds?

Types of private equity funds: mainly divided into private equity funds, private equity funds and asset allocation private equity funds.

Private equity funds mainly invest in publicly traded stocks, bonds, futures, options, fund shares and other assets stipulated by the China Securities Regulatory Commission;

Private equity investment funds mainly invest in the equity of unlisted enterprises, non-public offering or trading stocks of listed companies, and other assets stipulated by China Securities Regulatory Commission;

Asset allocation private equity funds mainly adopt the investment mode of funds in funds, mainly investing in private equity investment funds and private equity investment funds.

Private equity fund vs Public Offering of Fund

Different financing methods

Public offering funds raise funds from public investors in an open way, so in the process of issuance, they can be publicized and sold through the media, and investors can also buy funds from banks, brokers or other formal channels.

Private equity funds are only privately issued to qualified investors, and the law stipulates that funds cannot be raised through public publicity. Therefore, most of the funds that investors usually contact are Public Offering of Fund.

Different recruitment targets and thresholds

Public Offering of Fund's fundraising target is the general public, that is, ordinary people can buy it. The number of people is not limited, and the threshold is relatively low. Generally, it is 1 1,000 yuan, and some 10 yuan and 1 yuan can also be bought.

Private equity funds are aimed at a few specific qualified investors, including institutions and individuals, and investors need to have the corresponding risk identification ability and risk tolerance. Specifically, personal financial assets are required to exceed 3 million yuan, or there is proof that the income in the past three years is more than 500,000 yuan; Moreover, the investment threshold is high, generally 6.5438+0 million yuan. The larger the scale, the higher the threshold, and some even need more than 3 million yuan.

Different ways of information disclosure

Public Offering of Fund is open to most investors, so the CSRC has very strict requirements on its information disclosure: there are quarterly reports, semi-annual reports and annual reports, and it is necessary to disclose the investment target, investment portfolio, net product value, position ratio, dividends, top ten awkward stocks and other information in detail, so as to make the information effective, clear and accessible.

Private equity funds have relatively low requirements for information disclosure and generally do not disclose positions. There are no clear requirements for investment targets, investment portfolio, investment projects, net product value, when to purchase and redeem, and specific operations, and the confidentiality is stronger.

Management fees are charged in different ways.

Public Offering of Fund usually doesn't charge performance compensation, but mainly charges management fees, as well as subscription fees and redemption fees arising from transactions. Moreover, because the management scale in Public Offering of Fund is usually relatively large, the management fees charged are relatively low.

Private equity funds can also charge management fees, subscription fees and redemption fees. But these are not the main sources of income. Private equity funds mainly rely on collecting performance compensation, that is, extracting a certain percentage from the profit as a commission. In this case, private equity companies must always stand on the position of investors and continue to gain benefits for them, which is also a test of the management ability of fund managers.

Generally speaking, compared with Public Offering of Fund, private equity funds have fewer investment restrictions and flexible operation, which raises the threshold for investors and fund managers, requires investors to have certain asset strength and higher risk tolerance, and also puts forward higher requirements for fund managers' investment ability.

Special attention: different regions need different conditions and materials, so detailed communication is needed to understand what materials need to be prepared.

What does private equity fund do? 2 What does private equity fund do?

In China's financial market, the term "private placement fund" is often a collective investment directed at private placement by specific investors, rather than a securities investment fund that is supervised by the competent authorities of our government and publicly issues beneficiary certificates to unspecified investors.

The first one is a contractual collective investment fund based on signing an entrusted investment contract.

The second is the enterprise collective investment fund of joint-stock company based on * * *.

Investment Fund Management Co., Ltd.: The registered capital (capital contribution) is not less than 30 million yuan, all of which are in cash, and the paid-in capital (capital contribution) is not less than 30 million yuan when it is established; (Note: There are differences in registered capital requirements in different regions. Please consult)

The investment amount of a single investor shall not be less than RMB 6,543,800+0,000 (except for the general partner in a limited partnership).

It has articles of association that conform to the provisions of People's Republic of China (PRC) Securities Investment Fund Law and People's Republic of China (PRC) Company Law.

The number of personnel who have obtained the qualification for fund practice has reached a quorum.

Having business premises, safety precautions and other facilities related to the fund management business that meet the requirements.

It has a sound internal audit monitoring system and risk control system.

The name of the company-based equity investment enterprise is approved as "xx Equity Investment Co., Ltd." or "xx Equity Investment Fund Co., Ltd.". The name of the partnership equity investment enterprise is approved as "xx equity investment partnership+(limited partnership)" or "xx equity investment fund partnership+(limited partnership)".

The name of the corporate equity investment management institution is approved as xx Equity Investment Management Co., Ltd. or xx Equity Investment Fund Management Co., Ltd. or xx Equity Investment Fund Management Co., Ltd. ..

The name of the partnership equity investment management institution is approved as "xx equity investment management partnership+(limited partnership), (general partnership)" or "xx equity investment fund management partnership+(limited partnership), (general partnership)".

Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies.

Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.

What is the use of private equity funds? 3 can private equity funds make a profit?

First, absolute income and relative income

1. A small part of Public Offering of Fund's income comes from subscription fees, and most of it comes from fixed management fees (generally 2% of the fund size). It is a good thing to win relative income just to beat the market. There is a mentality of seeking nothing but nothing. As long as it is better than other public offerings and ranks high, investors will definitely pay the bill.

2. Private equity funds also charge subscription fees, but most of the income comes from the fund's performance share, simply to create a new high of 20% for investors. In other words, if customers don't make money, the fund company will have no income, which makes the fund company and customers become the same interest group.

Second, flexible operation and limited operation.

1, stock-based Public Offering of Fund must have 80% positions to buy stocks, that is to say, in a bear market, it can't reduce its positions and hedge, and its investment scope is limited, so it can't invest in derivatives such as futures options.

2. Private equity funds are flexible to operate. In case of bear market, they can not only short, but also short stock index futures and buy put options to make a profit. In case of shocks, private equity funds can make long or short fluctuations in the options market. In short, bear market and bull market can make money.

Third, the level of investment managers.

Of the 322 managers in Public Offering of Fund in China, 27.69% are under-invested 1 year, nearly 40% are under-invested 1-3 years, and there are 506 managers. However, under the banner of Public Offering of Fund, only 65,438+07.70% of fund managers have invested for more than five years.

2. Private placements are mostly well-known fund managers, top researchers of securities firms or recognized experts in private stock trading, with an average working life of over 10 years and mature investment strategies.

Fourth, the decision-making process

1. Public Offering of Fund, the manager, has limited right to speak in the whole fund company, and major investment decisions need to go through voting meetings. The proportion and allocation of positions are strictly limited, and the timeliness of investment is poor, which easily leads to the dilemma that bull market can't buy and bear market can't sell.

2. Private fund managers are more free to make decisions and can control the market. Top institutions pursue left-handed trading and reverse investment.

Characteristics of private equity funds

The operation mode of private equity fund is equity investment, that is, the shares of unlisted companies are obtained through capital increase and share expansion or share transfer, and profits are made through share value-added transfer. The characteristics of equity investment include:

1. The return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.

2. Equity investment is accompanied by high risks. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.

3. Equity investment can provide all-round value-added services. Private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also a key factor to attract enterprises.

While meeting the financing needs of enterprises, private equity investment funds can help enterprises improve their management ability, expand procurement or sales channels, integrate the relationship between enterprises and local governments, and coordinate the relationship between enterprises and other enterprises in the industry. All-round value-added services are the highlight and competitiveness of private equity investment funds.