Question 2: What does the three-year withdrawal period of private equity fund mean? The ultimate goal of private equity fund investment is not to gain the management control right of the invested enterprise, but to obtain value-added equity and high profits through the smooth withdrawal of funds, so that a perfect exit strategy becomes the key to the success of private equity fund development. Whether the exit mechanism is smooth or not determines the success of private equity fund investment, whether it can successfully recover capital and start the next link of the investment cycle. Without a perfect exit mechanism, it will be difficult for private equity funds to realize the recovery and appreciation of private equity capital and the virtuous circle of private equity investment, which is not conducive to the development of private equity funds and their role in the national economy. Therefore, it is very necessary to study the withdrawal of private equity funds in China for the development of private equity funds in China. However, there are still many problems in the exit mechanism of private equity funds in China, especially the IPO (initial public listing), which faces quite strict laws and regulations.
I. Definition and development of private equity funds
(A) the definition of private equity funds
Private Equity Fond refers to an investment fund that collects funds from a few specific institutional investors or natural person investors in a non-public way, mainly invests in unlisted enterprises, and finally withdraws through the initial public listing, mergers and acquisitions, share repurchase and liquidation of the invested enterprises to obtain investment income.
There are three elements to define private equity funds:
First, private equity funds can only raise funds from specific investors with certain risk identification ability and risk-taking ability by private placement. The key to distinguish whether a fund is a private equity fund lies in whether its fundraising method directly or indirectly publicizes unspecified investors by publishing announcements in the media, including various websites, posting notices in the community, distributing leaflets to the society, sending short messages to the public, or holding seminars, lectures and any other ways that are considered open or disguised.
Second, the investment field can only be non-publicly traded equity. Idle funds in the investment process can only be deposited in banks or used to buy fixed-income investment products such as government bonds. The purpose of this investment field restriction is to protect the rights and interests of investors and reduce investment risks.
Third, the exit channels are relatively fixed, such as public listing (IPO), mergers and acquisitions, share repurchase, liquidation, etc. Among them, public listing (IPO) is the most popular among private equity funds. The fundamental purpose of private equity fund investment is not to grasp the control right or long-term management right of the target investment enterprise, but to withdraw from the target investment enterprise at the right time to obtain high returns.
(B) the development of private equity funds
Private equity funds originated in the United States. From 65438 to 0976, three investment bankers of Bear Stearns, a famous wall street investment bank, established KKR, an investment institution, specializing in mergers and acquisitions, which was the earliest private equity investment company. Private equity funds gradually developed in the 1980s. At the beginning of 2000, the bubble of American internet technology stocks burst, and the Federal Reserve cut interest rates continuously, which brought unprecedented opportunities to private equity funds, and private equity funds developed and entered an upward period. In recent years, with the involvement of private equity funds in the management of enterprises in the investment process, the business model of enterprises has changed, and the invested enterprises have gradually developed and grown, making banks or IPOs no longer the preferred channels for enterprise financing. It is gradually becoming one of the mainstream to introduce private equity funds to co-manage and let private equity funds cooperate.
In China, the initial form of private equity fund-venture capital fund appeared in 1980s, which was promoted by * * * *. 1997 to 2000, with the establishment of many venture capital institutions in Shanghai and Beijing, venture capital or venture capital in China entered a development period; Since 2000, due to the bursting of the internet bubble, the venture capital industry in China has entered a trough, and the state has since paid attention to the improvement of the policy system; Since the reform of non-tradable shares began in China in 2005, the situation of China's securities market has improved. In 2006, the small and medium-sized board market was opened, the multi-level capital market was continuously improved and developed, and the financing function of the securities market was restored and strengthened. On June 1 2007, the Partnership Enterprise Law was revised and implemented, and the limited partnership system was formally established in the form of law, marking the rapid development of local private equity funds in China. & gt
Question 3: What do you mean by the return period of funds? It means when the fund expires.
Question 4: What does the fund term of 5+2+1mean? Private equity funds have a long term, usually 5-8 years. The term setting of private equity funds can be divided into investment period, withdrawal period and extension period, where 5 represents the shortest lock-up period of the fund, 2 represents the follow-up period, and 1 represents the extension period. Now the average private equity fund is 3+2 years, and the private equity fund of * * * is 5+2 years.
Question 5: What does it mean that my fund stops buying and redeeming? Ask experts to answer questions. If the fund stops purchasing, it can't be bought. If the fund stops redeeming, it can't be sold.
There are several possibilities for closed subscriptions:
The closing period of the new fund is to suspend subscription.
If the total amount of funds is too large, the subscription will be closed to ensure the interests of the holders.
Regular open-end funds usually close the subscription.
There are several possibilities for closing redemption:
The subscription and redemption of new funds will be suspended during the closed period.
Due to the large-scale suspension of holding stocks, it is impossible to sell stocks, and there are huge redemptions and short-term suspension of redemptions.
Some funds are open for redemption on a regular basis and cannot be redeemed at ordinary times.
Question 6: What do you mean by suspending fund trading? You bought a new fund. At present, the fund was successfully raised and formally established on July 2 1 day, and entered a closed period. Open-end funds will not be closed for more than three months, during which they cannot be purchased and redeemed, so you will see a suspension of trading.
After the closed period of the fund, the fund company will also make a corresponding announcement when the subscription and redemption are opened. During this period, the net value will generally be released once a week, and your income depends on the rise and fall of the net value.
Question 7: What do you mean by the open period and closed period of the fund? The process from raising funds to opening investment can be divided into three periods: raising period, closing period and normal subscription and redemption period.
The first is the feeding period. During this period, the fund management company sells funds to investors through the company's direct selling agencies or banks and other consignment agencies to raise funds. At this stage, investors can only buy fund shares and cannot sell them. The purchase price is the net value of shares (1 yuan), and the cost of purchasing fund shares is called subscription fee.
At the end of the recruitment period, it will enter a closed period. At this point, the fund contract has come into effect. However, during the closed period, the Fund does not accept investors' requests to purchase or redeem fund shares, and investors can neither buy nor sell fund shares during this period. According to the Securities Investment Fund Law, the closed period of the fund shall not exceed 3 months.
At the end of the closed period, the fund can accept subscription and redemption at the same time, which enters the normal subscription and redemption period, also known as the open period. Investors can purchase and redeem open-end funds according to their daily net share.
Question 8: What is the difference between investment period and renewal in private equity funds? When can the investment and principal be withdrawn? Look at the specific design of the product
General private equity managers want their products to keep running, so the renewal period is the product running period, which is usually very long, such as ten years.
However, customers have different requirements for the use of their own funds, which may only take 6 months, 1 year or 2 years, so a closed period (for example, 6 months) will be designed. After the closure period, the customer can redeem it within the specified time (such as the 20th of the current month).
The investment period of that customer is from investment to redemption.
Question 9: What do you mean by the remaining term of the fund?
Closed-end funds are limited in time, and you can get them back then. You can trade like copying stocks.
Then go to the securities business department to open an account.