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How to strengthen the supervision and construction of private equity funds
How to strengthen the supervision and construction of private equity funds

Private equity fund is a collective investment plan, which is used to carry out various equity investments and private placement of securities according to one of the related investment strategies. The following is a small collection of how to strengthen the supervision and construction of private equity funds. Welcome to read and share. I hope you like it.

How to strengthen the supervision and construction of private equity funds

The first is to clarify the scope of application.

The second is to clarify the obligations of private fund managers and custodians.

The third is to standardize fund raising and investment operation.

The fourth is to make special provisions for venture capital funds.

The fifth is to strengthen supervision and management and legal responsibility.

What do you need to engage in private equity funds?

1, the name shall conform to the Regulations on the Administration of Name Registration, and the words investment fund are allowed to be used in the names of investment enterprises that have reached the scale.

2. The words "venture capital fund, venture capital fund, equity investment fund, investment fund" in the industry terminology can be used in the name.

3. The registered capital of the fund investment fund company is not less than 500 million yuan, all of which are contributed in cash. The paid-in capital at the time of establishment shall be no less than 654.38 billion yuan: the registered capital shall be fully paid in within five years as stipulated in the Articles of Association.

4, the investment of a single investor is not less than 6.5438+million yuan.

5. At least three senior managers have experience in the management and operation of equity investment funds or related business experience.

6. The business scope of fund enterprises is approved as investment, investment management and non-securities business consulting.

What are the dividend distribution methods of private equity funds and what are the conditions?

Dividend ways of private equity funds: one is split, and the other is dividend.

Private equity fund dividend conditions:

1. After selling profitable stocks, private equity funds gain income.

2, the fund's current year's income to make up for the previous year's losses, before the current year's income distribution.

3. After the distribution of fund income, the net value of each fund share cannot be lower than the face value.

4. If there is a net loss in the fund investment year, the fund income will not be distributed.

Are private equity funds risky?

First, the risk of opaque information. Because private equity funds do not have strict information disclosure requirements, information opacity is the biggest risk of private equity funds. Investment planning, fund allocation, project tracking management and all other processes involving investment operation management may have insufficient information disclosure.

Second, investors' ability to resist risks is low. The reason why many investors participate in private equity investment is to value the high returns of private equity funds, but high returns also correspond to high risks. Many investors do not have the corresponding ability to resist risks, so investment should focus on the risks of such private equity funds.

Risks of private equity funds caused by third-party fund managers. Due to the lack of strict industry access standards, there are obvious differences in fund managers' management ability, industry status and market recognition. In the same market environment, some fund managers can bring benefits to investors with accurate investment, while some fund managers may cause losses to investors.

Fourth, higher moral hazard. Fund projects are generally established in the form of partnership. However, due to professional, geographical and time constraints, investors can not effectively supervise and manage the project, so moral hazard is also a private equity risk that investors often encounter.

Fifth, project financing lacks professionalism. Project financing generally requires high practical experience and professional ability, but some private fund managers or management teams are not competent enough to effectively monitor and manage project financing.

Sixth, illegally absorb the risk of public deposits. Some private equity funds will attract investors to participate in investment by deliberately exaggerating income and concealing projects, and these private placements are likely to illegally absorb public deposits.

The Difference between Private Equity Fund and Public Offering of Fund

1. Ways to raise funds. Public offering funds raise funds from public investors in an open way, which can be publicly issued through TV newspapers, fund company websites, bank sales, etc. Private equity funds cannot be made public and can only be issued to specific institutions or individuals.

2. The product scale is different. The assets of a single fund in Public Offering of Fund are usually in the hundreds of millions to tens of billions, and the stock pool usually has dozens to hundreds of stocks. The assets of private equity funds are only tens of millions to billions of yuan.

3. Investment restrictions. Public Offering of Fund has many restrictions on stock investment, such as holding a minimum position of 60% and not being able to participate in stock index futures hedging. The positions of private equity funds are very flexible, which can be short positions or Man Cang, and they can participate in the investment of various financial products such as stocks, stock index futures and commodity futures.

4. expenses. Public Offering of Fund's income mainly comes from fixed management fees. Due to the huge scale of Public Offering of Fund, the annual fixed management fee is enough to maintain the normal operation of Public Offering of Fund Company. The income source of private equity funds is mainly floating management fees, and the charging rule of this fee is that private equity companies draw 20% from each new high profit of the fund's net value as commission, which means that private equity companies can only make profits on the premise of making money for investors continuously.

5. Liquidity. The liquidity of Public Offering of Fund is very good, but the liquidity of private equity funds is relatively poor, and some private equity funds are restricted from 6 months to 1 year after subscription.