1. Whether PrivateFunds can make entrusted loans Private equity investment (also known as private equity investment or private fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be freely traded in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value. Due to the particularity of private equity funds, loans can often be entrusted now. Second, the classification of private equity funds According to different standards, there are many types of private equity funds. There are only common investment targets here. From the international experience, the investment targets of private equity funds are very extensive at present. Taking the United States and Britain as examples, the investment objects of private equity funds include stocks, bonds, futures, options, warrants, foreign exchange, gold and silver, real estate, information software industry and venture capital of small and medium-sized enterprises. Investment ranges from money market to capital market to high-tech market, from spot market to futures market, from domestic market to international market. According to the above objects, it can be divided into three categories: 1, securities investment private equity fund: as the name implies, this kind of fund mainly invests in financial derivatives such as securities, and hedge funds such as Quantum Fund, Tiger Fund and Jaguar Fund are typical representatives. Basically, managers design their own investment strategies and initiate the establishment of open-end private equity funds, which can adjust the investment portfolio and change the investment concept in time according to the requirements of investors and the development trend of the market, and investors can redeem them according to the net value of the funds. Its advantages are that it can be tailored according to the requirements of investors, the funds are relatively concentrated, the investment management process is simple, a large number of financial levers and various forms of investment can be used, and the yield is relatively high. 2. Industrial private equity funds: These funds mainly focus on investment industries. Because fund managers have a deep understanding of certain industries such as information industry and new materials, and have extensive contacts, they can initiate the establishment of industrial private equity funds in the form of limited partnership. Managers spend very little money only symbolically, and most of them are paid a raise. Managers should bear unlimited responsibilities while obtaining large investment income. This kind of fund is usually closed for 7-9 years, and will be settled in one lump sum at maturity. 3. Venture private equity fund: its investment target is mainly the rights and interests of small and medium-sized high-tech enterprises in the initial stage and growth stage, in order to share the high income brought by their rapid growth. Its characteristics are long payback period, high income and high risk. Can private equity funds entrust loans? Private equity fund is a special investment method, which can't be invested through stocks, because this form makes it pay more attention to entrusted loans. Even if there are some restrictions on entrusted loans of surplus private equity funds, they cannot be prohibited. This kind of entrusted loan behavior is still happening, and everyone should pay attention to certain risks.
Can private equity funds make debt investment?
Private equity funds can make debt investment. The private equity investment fund first provides a loan to the target enterprise, and stipulates that the private equity investment fund has the right to choose to convert the creditor's rights in the form of the loan into the equity of the target enterprise or require the target enterprise to repay the loan principal and interest at maturity. Interim Measures for the Supervision and Administration of Private Investment Funds Article 2 The term private investment funds as mentioned in these Measures (hereinafter referred to as private investment funds) refers to the investment funds raised from investors through private placement within the territory of People's Republic of China (PRC). The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts. These Measures shall apply to the registration, fund raising and investment operation of companies or partnerships established for the purpose of investing in private equity funds and assets managed by fund managers or general partners. These Measures shall apply to securities companies, fund management companies, futures companies and their subsidiaries engaged in private equity fund business. Where other laws and regulations and the relevant provisions of China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) provide otherwise for the above-mentioned institutions to engage in private equity fund business, such provisions shall apply.
Can private equity funds borrow money from abroad?
Private equity funds are not allowed to borrow money at will. Private equity fund refers to a fund set up to raise funds for a few institutional investors through private placement.
Because the sale and redemption of private equity funds are conducted through private consultation between fund managers and investors, they are also called funds raised from specific targets. Private equity fund is a special kind of inter-enterprise loan, which is special because it invests in the securities field.
Reply time: 2021-11-22. Please refer to the latest business changes announced by Ping An Bank in official website.
Is it a private equity fund?
Don't belong.
According to the fund industry association, private equity investment fund is an investment activity in which funds and investors share risks and obtain venture capital income through active risk management.
The debt of the private equity fund property shall be borne by the private equity fund property itself, and investors shall share the investment income and bear the risks within the limit of their capital contribution.
What's the difference between private equity fund and P2P?
1. Private equity funds are funds raised privately or directly from specific groups. On the other hand, public offering funds raise funds from the public. People usually say that funds are mainly mutual funds, that is, securities investment funds.
2.P2P refers to peer-to-peer peer-to-peer lending, which is a private micro-lending model, gathering small funds and lending them to people who need them. It belongs to a kind of Internet financial products. It belongs to private microfinance, an online credit platform built with the help of Internet and mobile Internet technology, and related financial management behaviors and services.
Tips: There are risks in entering the market, so you need to be cautious in investing.
Reply time: 2021-11-09. Please refer to the latest business changes announced by Ping An Bank in official website.