What is the operation process of PE private equity fund? 1. Value Discovery Both VC and PE will do due diligence on the invested enterprise before investing, including financial due diligence, legal due diligence and commercial due diligence. Look for projects with good investment value among potential projects mainly unlisted enterprises, and reach an understanding of investment cooperation with entrepreneurs. In this process, the core inspection management team, the industry status of the project, the current operation status, and whether it can achieve rapid growth in the future. 2. Value Holding After full due diligence on the project, the Fund completed its investment in the project company, became a shareholder of the project company, and held shares in the project company. A series of designs will be completed before investment, including industrial design (capital gains), operation design, property right design and capital design (capital listing). ) and other designs, such as legal design and social responsibility design. ). Private equity investment institutions set up post-investment management institutions and send post-investment management personnel after investment, so as to keep abreast of the business development of enterprises; Determine whether the enterprise will put the funds into the investment purpose set in the business plan, and whether it is occupied or misappropriated; Whether the investment effect deviates from expectations. The main purpose of post-investment management is to ensure the safety of investment funds. This is responsible to fund investors. 3. Value enhancement Private equity investment funds are catalysts for enhancing corporate value. The Fund makes use of its advantages in strategy, market, supply, technology, management, finance and other resource platforms to improve enterprise management, do a good job in investing in enterprises, optimize enterprises, and effectively enhance the intrinsic value (capital profitability) of enterprises. Value-added service for enterprises means that private equity investment institutions fulfill the rights and obligations of shareholders, participate in the board of directors, and evaluate the performance of enterprises through voting by the board of directors, which affects the appointment and dismissal of key management positions. 4. The value amplification fund will improve the value (capital appreciation ability) of the invested projects through 2-3 years' cultivation, and realize the value amplification by publicly issuing shares or selling them to industrial groups and listed companies at a premium through the capital market. 5. After the invested project is listed, the fund manager chooses the right time and reasonable price to sell the shares of the project enterprise in the capital market, so as to realize the ultimate value of the fund company. The withdrawal of private equity investment refers to the fund manager selling the equity of the invested enterprise in the market in order to recover the investment and realize the investment income. There are usually three exit channels and mechanisms for private equity funds and venture capital: First, they are listed on the Growth Enterprise Market, the main board or overseas capital markets, and fund managers quit by selling stocks. In this way, investors can usually get five times or more investment income. Second, by transferring the equity to a third-party enterprise, the investment income can be about 2-3 times. Third, split liquidation. 6. Income distribution of private equity investment fund investors, necessary costs and taxes (fund manager's management fee, bank custody fee, agency fee, business tax, etc.) after the fund gains income. ) are deducted to obtain the net income of the fund. To sum up, private equity fund is mainly a kind of fund that invests in some private equity. The investment of this fund should have a perfect operation process, so that the equity invested by itself will be profitable. Therefore, investment funds must choose good projects, which is also rewarding for themselves.