Private equity fund is an investment tool specially set up for high net worth investors. It is usually composed of a group of experienced fund managers, and obtains the funds needed for its establishment and operation by raising funds from some specific investors. The following is a small collection of how fund managers do private placement business. Welcome to read.

How do fund managers do private placement business?

1. He has rich experience in an investment field, such as stocks, futures, foreign exchange, gold, etc. ), and it is best to be profitable for a long time.

2. Make a description, including fund raising, investment, sharing and risk control.

There are a group of rich people who support you, and they provide you with the funds of the scale you want.

4. There is a research team that closely follows the changes of the market and makes plans.

Have an accurate and strict system, so that your plan can be really implemented.

6. Since private placement is in a gray area, it should be able to solve some unexpected troubles.

Start small, do what you can, and be low-key and rigorous.

How to be a private fund manager

I. In-depth understanding of industries and opportunities

Second, avoid risks and protect the interests of customers.

Third, team management, give full play to individual talents.

Fourth, stick to the moral bottom line and maintain the reputation of the industry.

Definition of Private Equity Fund

Private equity funds are funds raised by private individuals or directly from specific groups. The corresponding Public Offering of Fund is Public Offering of Fund. What people usually call funds are mainly mutual funds, that is, securities investment funds.

Divided from the research paradigm, there are three main analysis methods of securities investment: basic analysis, technical analysis and evolution analysis. These three analytical methods are based on completely different theoretical systems and logical structures, and their main research objects only focus on a specific aspect or category of market operation, all of which have their rationality and limitations, but they are essential for comprehensively understanding and deeply exploring the laws of market operation. They depend on different theoretical bases, premises and paradigm characteristics, which are interrelated and have important differences in practical application. Among them, basic analysis belongs to general economic paradigm, technical analysis belongs to mathematics or Newton paradigm, and evolutionary analysis belongs to biology or Darwin paradigm.

Private equity funds in a broad sense include private equity funds in addition to securities investment funds. In China's financial market, "private fund" or "underground fund" is usually a collective investment that is privately raised by specific investors, as opposed to the securities investment fund that is supervised by the competent department of China government and publicly issues beneficiary certificates to unspecified investors. There are basically two ways, one is the contractual collective investment fund based on signing the entrusted investment contract, and the other is the corporate collective investment fund based on establishing a joint-stock company.

The difference between private equity fund and Public Offering of Fund.

(1) proposed different objects. The target of public offering funds is the general public, that is, investors who are not specific to society. The target of private equity fund is a few specific investors, including institutions and individuals.

(2) Different financing methods. Public Offering of Fund raises funds through public offering, while private equity funds raise funds through non-public offering, which is the main difference between private equity funds and Public Offering of Fund.

(3) Information disclosure requirements are different. Public Offering of Fund has very strict requirements on information disclosure, such as its investment objectives and portfolio. Private equity funds have low requirements for information disclosure and strong confidentiality.

(4) Different investment restrictions. Public Offering of Fund has strict restrictions on investment types, investment proportion and matching between investment and fund types, while the investment restrictions of private equity funds are completely stipulated in the agreement.

(5) Different performance rewards. Public Offering of Fund does not extract performance compensation, but only collects management fees. Private equity funds, on the other hand, charge performance compensation and generally do not charge management fees. For Public Offering of Fund, performance is only the honor when ranking, while for private equity funds, performance is the basis of remuneration.

Characteristics of equity investment

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.