The risks of being your own private equity fund
I. Risk categories of private equity investment
1. Release form
Private placement cannot be raised publicly, which is the most fundamental difference between private investment funds and illegal fund-raising crimes. The Interim Measures for the Supervision and Administration of Private Equity Funds (hereinafter referred to as the Measures) clearly points out that private equity fund managers and private equity fund sales organizations shall not raise funds from units and individuals other than qualified investors, and shall not publicize and promote them to unspecified objects through public media or lectures, reports, analysis meetings and notices, leaflets, text messages, WeChat, blogs and emails.
2. Investment threshold
The threshold of private equity investment is not low. According to the regulations, private equity funds are targeted at a few specific investors, and the investment of a single investor cannot be less than 6,543,800 yuan.
3. Income commitment
Do not promise to protect the principal and income. Article 15 of the Measures stipulates that private fund managers and private fund sales institutions shall not promise investors that the investment principal will not be lost or promise the minimum income. In the process of signing a private equity investment contract, there should be no clear agreement on repayment of principal and interest. Private equity fund promoters are suspected of breaking the law if they promise investors guaranteed returns.
4. Number of people
In fact, private placement has strict restrictions on the number of investors. Where a joint-stock company is established, the number of investors (including legal persons and natural persons) shall not exceed 200. In the form of a limited company, the number of investors (including legal persons and natural persons) shall not exceed 50; In the form of partnership, the number of partners (including legal persons and natural persons) shall not exceed 50, which is the key point to distinguish whether it is illegal fund-raising.
Step 5 present
Don't take filing as a cover. Although private equity fund companies have begun to implement the filing system, small and medium-sized private placements can be registered because the threshold is not high. The private equity fund registration certificate, certificate and the right to relevant public information only show that the private equity fund manager has fulfilled the relevant registration procedures, and do not constitute recognition of the private equity fund manager's investment ability and continuous compliance, and do not serve as a guarantee for the safety of the fund property. If there is a private placement that regards the qualification registered with the association as its own credit guarantee, investors should not blindly believe it.
Second, the risk prevention measures of private equity funds
1, summary
How should investors recover and defend their rights when they buy the products of private equity companies that have lost contact with each other? Wang Xiangyu, a lawyer from He Yi Guanda Law Firm, Zhejiang Province, made an analysis from several aspects. Lawyer Wang said that when it comes to safeguarding rights, investors need to know whether their rights have really been infringed. The "Announcement on the Latest Situation of Lost Private Equity Institutions and the Sixth Batch of Public Lost Private Equity Institutions" issued by the Fund Industry Association is only a suspected list. And losing contact does not mean infringement.
2. Equity judgment
How do investors judge whether their rights and interests have been infringed? Generally speaking, investors will sign an agreement before investing. Investors should first look at how their agreements are stipulated. For example, whether the nature of the contract is an investment agreement or a loan agreement, whether the funds are entrusted by the bank and so on. For example, if an investor signs an investment agreement, the investor needs to do some more investigation, and the money invested can't be returned. Is it because of the investment failure caused by normal business risks, or because the fund company runs away? If it is a normal investment failure, then there is no so-called rights protection. If it is escaped by money, it is necessary to defend rights.
3. Relief channels
Investors determine that their legitimate rights and interests have been violated, and how to safeguard their rights. There are usually two ways to protect rights: one is civil and the other is criminal. The specific form of rights protection, investors need to determine according to the specific situation. For example, fund management companies abscond with money, and fund management companies may be suspected of fraud and other criminal charges. Investors should report to the public security organs to safeguard their legitimate rights and interests.
Three. Relevant laws and regulations
Article 38 Private equity service institutions such as private equity fund managers, private equity fund custodians and private equity fund sales organizations and their employees who violate the provisions of Articles 7, 8, 11, 14-17 and 24-26 of these Measures, and commit any of the acts listed in Items 1-7 and 9 of Article 23 of these Measures, shall be ordered to make corrections, given a warning and imposed a fine of not more than 30,000 yuan; Give a warning to the directly responsible person in charge and other directly responsible personnel and impose a fine of not more than 30,000 yuan; Whoever commits the act in Item 8 of Article 23 of these Measures shall be punished in accordance with the relevant provisions of the Securities Law and the Regulations on the Administration of Futures Trading; If the case constitutes a crime, it shall be handed over to judicial organs for criminal responsibility.
Article 39 If private fund managers, private fund custodians, private fund sales organizations and other private service institutions and their employees violate laws, regulations and the provisions of these Measures, and the circumstances are serious, the China Securities Regulatory Commission may take measures to prohibit the relevant responsible persons from entering the market according to law.
Fortieth private securities fund managers and their employees who violate the relevant provisions of the Securities Investment Fund Law shall be punished in accordance with the relevant provisions of the Securities Investment Fund Law.
The risk of being your own private equity fund II
How to do well the post-investment management of private equity investment funds? The main points are as follows:
After the vote.
Post-investment management refers to a series of activities in which the fund manager actively participates in the major business decisions of the invested enterprise, monitors the risks of the invested enterprise and provides various value-added services after the equity investment fund signs a formal investment agreement with the invested enterprise.
Post-investment management is related to the development of investment projects and the realization of exit schemes. The purpose of post-investment management is to reduce or eliminate potential investment risks from the active level and realize the preservation and appreciation of investment.
operate
Post-investment management includes project monitoring activities and providing value-added services.
Project monitoring activities include timely understanding of the operating conditions of the invested enterprises and taking necessary measures according to different situations to ensure the safety of funds;
The purpose of providing value-added services is to enhance the value of invested enterprises and increase the income of investors.
Post-investment management information
The main channels for obtaining post-investment information include attending the shareholders' meeting, the board of directors and the board of supervisors of the invested enterprise and consulting the operating report of the invested enterprise.
Managers should pay close attention to the following problems in enterprises: delay in payment, loss, delay in reporting date of financial statements, poor quality of financial statements, major changes in balance sheet items, entrepreneurs avoiding contact, theft of a large amount of property, changes in management, major changes in sales and ordering, abnormal inventory changes, lack of budget and plan, changes in accounting system, loss of important customers and suppliers, labor problems, market prices and changes in shares.
At the same time, we should also pay close attention to the external early warning signals such as changes in the technology needed for enterprise production, changes in the industry in which the enterprise is located, and changes in government policies.
At the same time, do a good job in daily contact and communication, and talk and contact with the main management personnel of the invested enterprise through telephone calls or meetings, field visits to the enterprise, etc.
Monitoring of post-investment management of funds
In terms of project monitoring, it mainly focuses on business indicators, management indicators, financial indicators and market information tracking indicators.
Business indicators
Business indicators include performance indicators and growth indicators. For enterprises with relatively mature business and stable market, focus on performance indicators, such as net profit; For enterprises that are still actively exploring the market, focus on growth indicators, such as sales growth, network construction and new market entry.
Management index
Management indicators mainly include the company's strategy and business positioning, business risk control, shareholder relations and corporate governance, due diligence and changes of senior management, major business management matters, and crisis handling.
financial target
Financial indicators mainly include the use of funds, three major financial statements, accounting system and major financial plans, and feedback from accredited financial supervisors.
Market information tracking index
Market information tracking indicators mainly include product market prospects and competition, product sales and market development, business information learned by third parties, related industry trends and policy changes.
Post-investment management value-added services of funds
The main contents of value-added services include:
Provide reasonable suggestions to help the invested enterprises gradually establish a standardized corporate governance structure.
Establish a standardized accounting process and assist in establishing a modern financial management system with standardized management and risk control as the basic concepts.
Provide advice on strategy, organization, finance, human resources and marketing.
The risk of being your own private equity fund 3
First, the risks of private placement products.
1. 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.
2. Investors' ability to resist risks is low.
The reason why many investors participate in private equity investment is that they 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.
3. Private equity fund risks caused by 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.
4. 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.
5. 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.
6. Risks of illegally absorbing 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.
I don't know. I don't know. At first glance, I was shocked. There are so many risks in private equity products, so how should individual investors identify the risks? Interested friends can go to Dune to study, a professional venture capital knowledge platform in the circle.
Second, how to prevent the risk of private placement
First, before making any investment, remember to know whether it is an approved legal institution through the financial department. Formal private equity funds are filed with the China Fund Industry Association, and investors can inquire about the registered funds through the publicity of private equity funds and the publicity of private equity fund managers on the website of the Fund Industry Association.
Second, private fund managers may not engage in businesses that have nothing to do with private fund management or have conflicts of interest; Investors should be more vigilant if they engage in other businesses that do not belong to the business scope of private equity funds under the banner of private equity funds.
Third, private equity funds have a high investment threshold for investors, 654.38+0 million; Private equity fund products with low price 1 10,000 are suspected of "spelling orders".
Fourth, private equity funds need strong risk tolerance, so investors should fill in the risk assessment questionnaire truthfully in the sales process, and "Feidan" products often skip this link in order to avoid corporate supervision. Once there is a lack of procedures in the sales process, investors should be vigilant.
Fifth, private equity funds must not promise minimum returns, and investors should be wary of words such as "capital preservation" and "guaranteed returns". At the same time, investors should not pursue excessive return on investment.