1. The definition of sunshine private equity funds. Broadly speaking, private equity includes private equity funds (PE) and private securities funds (sunshine private equity). In China, private equity generally refers to private equity funds, which is also sunshine private equity.
The so-called sunshine private equity refers to a type of investment product that uses non-public methods to raise funds from specific investors and invest them in securities.
2. Purchasing method of Sunshine Private Equity Sunshine Private Equity targets specific investors, and the general starting point is 1 million.
For very few products with a starting price of several hundred thousand, but less than 1 million, an asset certificate must be issued at the time of purchase to prove that the customer has financial assets of more than 1 million.
There is a limit of 50 individual investors below 3 million (exclusive), which means that Sunshine Private Equity has a limit of 50 natural persons (institutional investors are not subject to this restriction), and investment scales greater than or equal to 3 million are not subject to this restriction.
In addition, the 1% subscription fee for private placement is charged outside the price. For example, if you purchase a product worth 1 million, you will pay 1.01 million when making the payment.
Unless there are special provisions, the subscription fee cannot be reduced. This should be noted to avoid unsuccessful subscription.
The fixed management fee is 1.5%-2% per year. Different products have different regulations. This part is included in the price and will be deducted by the trust regularly.
3. Features of private equity (1) For public equity, the biggest special offer of Sunshine Private Equity is that the positions are more flexible, with 0-100% of the positions freely selectable. Equity public equity funds must have at least 60% of the positions.
It is this key point that allows Sunshine Private Equity to move forward and retreat freely in a volatile market, and is well-positioned to avoid the risks brought by a bear market.
(2) Sunshine Private Equity’s main income relies on product profits. The private equity company and its clients split the income 28/20, which is highly tied to the interests of the investment. Public funds rely on fixed management fees.
(3) Sunshine private equity funds are smaller in scale than public offerings, are flexible in response, and have more advantages in operation.
4. Advantages and Disadvantages of Sunshine Private Equity From the characteristics of Sunshine Private Equity, we can see the advantages of Sunshine Private Equity: flexible positions, smaller scale, privacy, good incentive mechanism, etc.
The disadvantage is that Sunshine Private Equity has a higher starting point and is only for high-net-worth individuals. In addition, it has a closing period of about 6 months, which requires Sunshine Private Equity to insist on medium- and long-term investments.
5. Understand the ways of Sunshine Private Equity. For the knowledge of Sunshine Private Equity, you can find some books to read. However, if you want to know the performance of Sunshine Private Equity, you must not rely on any book. You must know that the timeliness of books is very poor. It is recommended that you pay attention to it.
Some financial institution websites specialize in sunshine private equity.