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What does the incentive mechanism of limited partnership private equity investment fund contain?
(1) Economic benefit incentive

Limited partnership private equity investment funds, the remuneration of general partners, divided into fixed remuneration and variable remuneration. Fixed remuneration is a management fee charged according to 2%-3% of the total amount or investment of private equity investment funds. Variable income refers to a certain proportion (generally 15%-20%) of the profit commission obtained after the equity listing or the sale of investment, that is, the residual claim. That is to say, although the general partner only invests l% of the partnership capital, he enjoys 15%-20% or even higher investment profit commission, which can be considered as the general partner's knowledge capital (professional expertise, experience and performance). This kind of salary structure in the form of option can greatly stimulate the general partnership.

(2) Power and status incentives

The governance mechanism of limited partnership private equity investment fund is unique. As a limited partner, investors shall not participate in the operation of investment capital and shall not interfere with the business activities of general partners, otherwise they will lose the protection of limited liability. The general partner is fully responsible for the operation and management of venture capital, and can give full play to his knowledge and experience and enjoy the control over the investment business. The partnership agreement also gives the general partner the right to supervise the limited partner to pay the capital contribution on time. If the partner violates the investment commitment without reason, defaults or refuses to pay the promised amount of investment, he will be punished, such as reducing the proportion of his shares and limiting his withdrawal of the invested capital. This mechanism fully guarantees the creativity and independence of the general partner and is conducive to mobilizing the enthusiasm of the general partner.