What does M&A Fund mean?
M&A fund, because its full name is acquisition fund, is a fund form developed from European and American countries in the mid-20th century. As the name implies, M&A fund refers to a fund that focuses on M&A investment of enterprises.
Investment method: acquire the equity of the target enterprise to obtain the control right of the target enterprise, then reorganize and transform the target enterprise and sell it after a period of time.
Operation mode of M&A fund
There are three modes for domestic securities firms to operate M&A funds:
1. Participate in M&A fund led by local government.
Shanghai International Group plans to take the lead in setting up RMB overseas M&A fund with the scale of10 billion, and securities companies are expected to participate as investors.
2. Establish a joint venture M&A fund
In addition to cooperation with local governments, many brokers will also choose to cooperate with internationally renowned capital giants to develop M&A business.
3. Direct investment mode
The direct investment subsidiary of the securities company initiated the establishment of M&A fund. Part of the M&A fund is provided by the brokers themselves, and the other part is raised from the society. Direct investment mode is conducive to the rapid transformation of accumulated projects. At the same time, this operation mode is likely to become the mainstream of M&A fund business of securities firms in the future.