Get the business license, plan to hold a press conference, confirm the future investment direction of the fund, carefully study and discuss the investment direction, and start raising funds after the project is invested.
Introduction:
Private equity investment is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely 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.
Fund characteristics:
The operation mode of private equity fund is equity investment, that is, through capital increase and share expansion or share transfer, the shares of unlisted companies are obtained, and profits are made through share value-added transfer. The income from equity investment is very rich. Unlike debt investment, which gets a certain proportion of invested capital, equity investment gets dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.
Operation mode:
There are two main ways for private equity funds to operate: the first way is to guarantee the bottom, and the fund will hand over the guaranteed funds to investors and set the bottom line accordingly. If it falls below the bottom line, the operation will be automatically terminated and the deposit will not be returned. Second, the collection account, if it falls below the agreed loss ratio, the customer can automatically terminate the agreement and divide the agreed profit part or the part above the agreed profit according to the agreed ratio, aiming at familiar customers and large enterprises.