What do private equity firms do? For most people, private equity is a strange term, but it is not strange to people in the financial field. At present, the income of this industry is considerable, but the wages of individuals vary greatly, mainly depending on personal ability. What will you do next?
What do private equity firms do1i. What do private equity firms do?
As a professional investment management organization, private equity investment fund management companies play an important role in the initiation, management, operation and liquidation of private equity investment funds.
Mainly in the following aspects:
1. Private equity investment needs funds as a carrier. Usually, after fund management companies set up different funds to raise funds, they will hand them over to different managers for investment operation.
2. Fund managers and managers are the main components of fund management companies. They are usually professionals with rich experience in industry investment. They focus on specific industries and enterprises at specific stages of development. After investigation and study, they put their funds into the equity of several enterprises in order to withdraw and gain capital gains in the future.
Second, the filing requirements of private equity investment companies?
(1) Identification of qualified investors (subject to procedures such as questionnaire survey of qualified investors, risk disclosure, confirmation of cooling-off period and return visit);
(2) Opening a basic bank account after completing the registration of industrial and commercial establishment;
(3) Opening a fund-raising account and signing a supervision agreement; Qualified investors will inject the capital contribution into the fund-raising account;
(4) Choosing the custodian and outsourcing agency (whether to choose or not is determined according to the specific situation); The "actual receipt certificate" issued by the custodian institution;
(5) Upload the relevant documents involved in the above procedures to the product filing sub-column of the association manager system;
(six) after the completion of the filling, upload, after the approval of the association, complete the filing of private equity funds, you can invest in the proposed project.
3. What is a private equity investment company and how to register it?
(1) Private equity companies are companies that raise funds from investors and invest in bearer shares. The so-called private equity fund generally refers to the fund engaged in equity investment of non-listed companies. Private equity investment companies are companies that invest in unlisted stocks.
As a professional investment management organization, private equity company is the core to realize the function of "collective investment and expert financial management". It plays an important role in the initiation, management, operation and liquidation of private equity investment funds.
(2) What is the process of establishing an equity investment company?
1, company name (name verification of industrial and commercial bureau, most of which can be verified on the website of industrial and commercial bureau now)
2. How much registered capital, shareholder's share (investors (shareholders) can contribute in the form of loans, or in kind (such as cars), real estate, intellectual property rights, etc. Only money contributes to banks. If it is in kind, real estate, etc. , it needs to be evaluated by an accounting firm before the actual investment. It is enough to suggest monetary contribution, and other physical objects or intellectual property rights are more complicated. )
3. Copy of shareholder's ID card
How to register private equity investment funds?
1. The registration conditions and procedures of partnership private equity investment enterprises basically follow the requirements of the Measures for the Administration of Partnership Enterprise Registration, the Notice on Doing a Good Job in the Administration of Partnership Enterprise Registration and the Provisions on Enterprise Registration Procedures. It should be noted that different places have different requirements on registration conditions and procedures.
2. According to the relevant provisions of the Partnership Enterprise Law, the registration of a limited partnership enterprise shall meet the following conditions:
(1) A limited partnership enterprise shall be established by two or more partners, but the number of partners shall not exceed 50, unless otherwise stipulated by laws and regulations. A limited partnership enterprise shall have at least one general partner;
(2) Having a written partnership agreement;
(3) The words "limited partnership" shall be marked in the name of a limited partnership enterprise;
What do private equity firms do? 2. Definition of private equity.
1, official definition
A fund registered by the China Asset Management Association (hereinafter referred to as the fund industry association), which is issued by a private fund manager (called a person, actually refers to a company) and only qualified investors can participate.
Note: the company files, but the product does not file, and the product is not called private equity fund.
Generally speaking, private placement is private placement.
2. Classification of private placement
According to the investment direction, there are mainly securities and equity.
Securities is the private placement in the mouth of ordinary investors, mainly investing in derivatives such as stocks, bonds and futures of listed companies. In the early years, many people equated private placement with bookmakers. Xu Xiang, which is known all over the country, does private placement of securities.
Equity investment is generally the equity of a non-listed company, and it can be withdrawn (i.e. cash in profits) through listing, equity transfer and repurchase. Private equity (PE for short) is somewhat similar to angel investment, VC and venture capital, especially people in banks. When it comes to private placement, the first thing that comes to mind is what to do, not the banker.
Therefore, when chatting, please distinguish what the other person is saying first. It will be embarrassing to talk about private equity funds with people who are engaged in stock trading and projects.
Second, private equity.
It refers to a business model in which a group of people with certain successful investment experience (GP) use their own performance records to make a sum of money to the rich (LP), and then compensate LP through several years of investment return, and take the money themselves.
1、GP
General partners are all people with profound knowledge in investment, such as David Bond Mann, Jim Coulter of TPG, Buffett of Berkshire, Rubinstein of Carlyle, three founders of KKR and Romney of Bain. They all set brilliant investment records early in their careers (the investment increased by more than 65,438+00 times in five years). If they do well, they want to control more funds and invest in bigger projects, so they can share more money, so they go to LP for money.
2、LP
A limited partner refers to an investor who can take huge risks, buy at least 6,543,800+fund products at one time and earn more than 500,000 yuan annually.
Private equity funds in the United States aim to circumvent their securities laws. Common settings of private equity funds: investors below 65,438+00,000 and investors below 65,438+000 all abide by the law.
The actual situation in China is that I only have 500,000 yuan, so I can find another person to earn 1 10,000 yuan, and I can find a company to change it.
Some foreign companies manage a large number of assets, such as pension management companies and sovereign funds of a certain country. They need to allocate a lot of money. Private placement is a high-return industry, so they will allocate some funds to these private placement companies.
3. Details of the transaction
For large foreign companies, the term of each transaction is generally 7 years, that is to say, from the time when LP's money is invested in a project to the time when the project is withdrawn, LP can be divided into 7 years at most, and must withdraw within 7 years.
If the scale of the first-phase fund is $65.438+0 billion, then $ 654.38+0-50 million, that is, 654.38+0%-5% is contributed by GP and the rest by LP.
LP will give GP a management fee every year, which is generally about 2% of the invested scale of the fund.
When the project quits the sharing, 80% of the project net profit will be given to LP and 20% to GP.
What do private equity firms do? 3 how to set up a private equity fund?
First, the establishment of managers.
1. To issue private equity funds, there must be a "private equity fund manager" first. According to the Securities Investment Fund Law, fund managers are legally established companies or partnerships. According to the explanations of the CSRC and the fund industry association, private fund managers apply the same standards, that is, private fund managers are legally established companies or partnerships, and natural persons cannot be registered as private fund managers. Therefore, we should first set up a company or partner as a private fund manager.
2. Most private fund managers are corporate, and a few are limited partnerships. Theoretically, limited partnership has some advantages, such as no requirement for registered capital and no capital verification, so it is convenient to register; There is no need to pay enterprise income tax, which avoids the problem of double taxation of enterprise income tax and personal income tax. However, in practice, limited partnership enterprises may encounter some problems in their operation because of their relatively small number, special nature and relatively few laws and regulations.
3. When setting up an enterprise, besides the form of the enterprise, we should also pay attention to the registered capital and paid-in capital of the enterprise. According to the requirements of the Operating Guidelines for Securities Investment Trust Business of Trust Companies, the paid-in capital of a third party as an investor in trust products shall not be less than RMB100000 yuan. Therefore, if you intend to issue private equity funds through trust channels in the future, the investment enterprises established as fund managers need to have corresponding capital.
4. The place of registration is also an issue to be considered. Private fund managers can choose to register in some administrative districts or hedge fund parks with special support policies and professional services for private funds, such as Shanghai Pudong New Area, Shanghai Hongkou Hedge Fund Park and Shenzhen Qianhai New Area. These areas provide a series of policy and economic support for private equity institutions, including tax reduction and exemption policies, preferential office space and even cash rewards. The staff of relevant government agencies are relatively familiar with finance and have strong professionalism.
Two. Registration and filing of private fund managers
1. In February this year, the Measures for the Registration of Private Investment Fund Managers and Fund Filing was promulgated and implemented, which clarified the whole registration and filing system. Since then, private fund managers need to register with the fund industry association. According to the provisions of the Securities Investment Fund Law, the Interim Measures for the Supervision and Administration of Private Investment Funds, and the Measures for the Registration of Private Investment Fund Managers and the Filing of Funds (for Trial Implementation), private equity fund management institutions shall go through the registration procedures. Otherwise, it shall not engage in private investment fund management business activities.
The private placement industry is supervised by the CSRC, and the CSRC entrusts the fund industry association to be responsible for the registration and filing of private placement. Therefore, after the establishment of an investment company as a private fund manager, it is necessary to register information in the "private fund registration and filing system" on the website of the fund industry association.
2. Materials to be reported for the registration of private fund managers: basic information of fund managers, basic information of senior managers and other employees, basic information of shareholders or partners, and information of managed funds.
Among them, the basic information of the fund manager mainly includes the organization name, establishment time, enterprise nature, organization form, office address, registered capital/subscribed capital, paid-in capital/paid-in capital, legal representative/executive partner (appointed representative), business license, organization code, tax registration certificate number and photo, and number of employees.
The basic information of senior managers mainly includes name, gender, nationality, certificate number, qualification, education background and work experience. The basic information of shareholders or partners mainly includes the name, nationality and certificate number of natural person shareholders, the name, enterprise nature and organization form of institutional shareholders, as well as the subscribed amount and proportion of shareholders, paid-in amount and proportion, etc.
Third, prepare all the materials.
In order to distribute products, private equity institutions must deal with various external institutions, including brokers such as securities companies and futures companies, channel parties such as trust companies or Public Offering of Fund, fund parties and sales channels such as banks or tripartite sales platforms. During the product preparation period, these involved institutions will conduct due diligence on the private placement managers and need the managers to provide relevant materials. The contents of due diligence generally include:
1, company profile
Introduce the basic information of the company and its main personnel, including the company's establishment time, registered capital, shareholders, department structure, investment and research team, senior management personnel and core investment and research personnel's academic qualifications and work background, etc.
In this part of the introduction, we should try our best to highlight the abilities and advantages of core personnel, such as highly educated team, academic authority, working experience as an executive or investment manager in large investment institutions at home and abroad, famous star stock analysts, senior entity industry background, actual combat experience after many bear markets, and one million historical achievements.
2. Investment process and risk control degree
The introduction of investment process mainly lies in the investment decision-making system, such as whether there is an investment decision-making Committee and how the voting meeting is composed and operated; Whether to adopt the fund manager responsibility system or collective decision-making system; The selection process of alternative investment targets, the decision-making and operation process of buying and selling, etc. Responsibilities and cooperation mechanisms of various departments in investment and research. The degree of risk control mainly includes whether there is a risk control department, specific risk control standards, and risk control operation procedures.