For many investors, it is basically the dream of some people to set up their own private placement, but certain conditions need to be met if they want to set up private placement. The following is a small collection of how to set up private equity institutions. Welcome to read and share. I hope you will like it.

How to start a business and set up a private equity fund organization

1. Make investment strategy.

Private equity funds operate according to specific investment strategies, so you need to formulate a unique investment strategy to attract potential investors. The investment strategy should include specific details, such as the description of the pursued asset category and risk-return characteristics.

2. Register the company and obtain relevant licenses.

To set up a private equity fund company, it is necessary to cancel the company and obtain the relevant permission from the place where it is located. According to different jurisdictions, different licenses and certificates may be required.

3. Find a suitable trust and brokerage company.

Private equity funds often need to find professional custody and brokerage companies to manage and trade assets. It is suggested to choose a company with high reputation and good capital safety record to reduce risks.

4. Formulate fund contracts and recruit investors.

The establishment of private equity funds needs to recruit enough investors. You need to make a detailed fund contract, stipulating all the legal and financial requirements, including the investment objectives of the fund, the requirements for investors' access, and the subscription method.

Step 5 do the operation

When all the project establishment steps have been completed, you need to start a series of operational measures to develop your fund company on a large scale through the recognition and guidance of investors. In the process of program operation, the operator should strengthen communication with investors, custodians and regulators to ensure legal operation.

What does it take to set up a private equity fund?

1. According to the Securities Investment Fund Law, the fund manager is a legally established company or partnership. A natural person cannot be registered as a private fund manager.

2. The registered capital should be above 6,543,800+million.

3. At least three senior managers have the qualification of private equity fund. Those who meet one of the following conditions can be considered as qualified for private placement: passing the private placement qualification examination organized by the fund industry association; Engaged in investment management related business in the last three years; Other circumstances identified by the fund industry association.

4. The applicant institution has the premises, facilities and basic management system to meet the business needs.

How do private fund managers submit information?

1. The private equity fund manager shall update the relevant information of the managed private equity funds within 5 working days after the end of each month, including the fund size, unit net value, number of investors, etc.

2. The private equity fund manager shall update the relevant information of non-securities private equity funds such as private equity funds managed by him within 10 working days after the end of each quarter, including subscription scale, paid-in scale, number of investors, main investment direction, etc.

3. Private fund managers should update the basic information of private fund managers, shareholders or partners, senior managers and other employees, and managed private funds. Within 20 working days after the end of each year.

How do novices start the fixed investment of funds?

1, plan the funds well.

First of all, investors must be clear: they must invest with idle funds. Therefore, before starting to invest, they must make a good budget and know how much idle funds they can invest in the fund besides the necessary expenses.

2. Know which fund is suitable for fixed investment.

Remember the first principle of investment: if you don't understand, don't vote. If you understand, you can vote with confidence. Be sure to understand the classification of funds before starting a fixed investment. Which fund is more suitable for fixed investment? Generally speaking, fixed investment and index funds are the best combination.

3. Where can I buy a fund?

You can choose to buy funds in the account field opened by brokers, or you can choose to buy funds on third-party trading platforms, such as Alipay and Tian Tian Fund. It is best to choose to buy in the venue, with the lowest handling fee. It is recommended not to buy in the bank, with higher handling fee and fewer choices.

4. Set the investment target and time.

Investment goals should be set according to everyone's actual situation. There is no uniform standard. It is suggested that 60% of idle funds be used for fixed investment of the fund. As for the investment time, the advantages of fixed investment can be better reflected through long-term investment. It is recommended to make a long-term plan, generally it is best to be about 3-5 years.

Once the fund starts to make a fixed investment, we must stick to it. You can't stop investing because of a temporary decline, or even buy more.

The advantages of private equity funds mainly include

High investment flexibility: You can adopt more flexible investment strategies and operation methods, such as leveraged investment and equity investment.

High return on investment: Due to the high investment threshold, it is generally only for high-net-worth investors, and the return on investment of private equity funds is usually higher than that of Public Offering of Fund.

The shortcomings of private equity funds mainly include:

High investment risk: Due to the high investment threshold and flexible investment strategy, the investment risk of private equity funds is relatively high.

Long investment cycle: the investment cycle of private equity funds is usually more than 3 years, and investors need to be patient enough to wait for returns.

Insufficient information disclosure: Due to the high investment threshold of private equity funds, it is generally only for high-net-worth investors, and information disclosure is not as transparent as that in Public Offering of Fund. In addition, the management fees and performance rewards of private equity funds are relatively high, which has a certain suppression on investors' income.