Therefore, private equity fund companies will start to raise funds and issue products after completing the filing of fund managers.
At present, the capital threshold for the issuance of domestic private placement products is 5 million yuan. After the fundraising is completed, the product issuance needs to go through the following four steps:
Product archiving
After the fund manager has passed the filing, the fund issuer shall apply to China Asset Management Association before issuing products, and start fund raising after approval.
product design
After reporting products to the association, the second step is to determine and design private placement products.
The contents involved in this step include: specific operation mode, raising cycle, risk control, raising scale, closing period, underwriting method, capital investment, withdrawal mechanism, fund product contract, product introduction, roadshow and a series of promotional activities.
The nature of fund products is generally divided into company system, trust system and limited partnership system If the designed product is a limited partnership, the fund company needs to register a limited partnership.
Product trusteeship
Clarify the identities of fund managers and fund custodians, and suggest choosing a trading team with mature trading model and stable trading records as fund managers.
To open a third-party custody account, generally choose a brokerage account or a bank account. It is particularly important to note that securities funds must be escrow accounts.
Product archiving
After the product is confirmed, it will take about one month to register the fund products in the China Asset Management Association system.
After completing the above four steps, the fund products can be issued smoothly.
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