What do private equity firms do? In the real society, we all know that it is very important for a company to own equity, and often private equity funds are funds that cannot publicly announce the raised funds. The following is an understanding of what private equity firms do.

What do private equity firms do? What does private equity fund do?

In China's financial market, the term "private placement fund" is often a collective investment directed at private placement by specific investors, rather than a securities investment fund that is supervised by the competent authorities of our government and publicly issues beneficiary certificates to unspecified investors.

The first one is a contractual collective investment fund based on signing an entrusted investment contract.

The second is the enterprise collective investment fund of joint-stock company based on * * *.

Investment Fund Management Co., Ltd.: The registered capital (capital contribution) is not less than 30 million yuan, all of which are in cash, and the paid-in capital (capital contribution) is not less than 30 million yuan when it is established; (Note: There are differences in registered capital requirements in different regions. Please consult)

The investment amount of a single investor shall not be less than RMB 6,543,800+0,000 (except for the general partner in a limited partnership).

It has articles of association that conform to the provisions of People's Republic of China (PRC) Securities Investment Fund Law and People's Republic of China (PRC) Company Law.

The number of personnel who have obtained the qualification for fund practice has reached a quorum.

Having business premises, safety precautions and other facilities related to the fund management business that meet the requirements.

It has a sound internal audit monitoring system and risk control system.

The name of the company-based equity investment enterprise is approved as "xx Equity Investment Co., Ltd." or "xx Equity Investment Fund Co., Ltd.". The name of the partnership equity investment enterprise is approved as "xx equity investment partnership+(limited partnership)" or "xx equity investment fund partnership+(limited partnership)".

The name of the corporate equity investment management institution is approved as xx Equity Investment Management Co., Ltd. or xx Equity Investment Fund Management Co., Ltd. or xx Equity Investment Fund Management Co., Ltd. ..

The name of the partnership equity investment management institution is approved as "xx equity investment management partnership+(limited partnership), (general partnership)" or "xx equity investment fund management partnership+(limited partnership), (general partnership)".

Private equity investment (also known as private equity investment or private equity fund) 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. 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.

What do private equity firms do? 1. Is it illegal to invest in private equity funds in China?

Private equity funds are legal in China as long as they meet the statutory forms and requirements.

On July, 2065438+2004 1 1, the CSRC officially promulgated the Interim Measures for the Supervision and Administration of Private Equity Funds, which listed qualified investors in a separate chapter. It is clear that the investor amount of private equity funds cannot be less than 6,543,800 yuan.

According to the new requirements, "qualified investors" should have the corresponding risk identification ability and risk-taking ability. The amount invested in a single private equity fund cannot be less than 6,543,800 yuan. The investor's personal net assets are not less than 6,543,800 yuan, personal financial assets are not less than 3 million yuan, and the average annual income in the last three years is not less than 500,000 yuan.

Because institutional investors, such as enterprise annuities, charitable funds, social security funds and investment plans, which are established according to law and supervised by the State Council financial supervision and management institutions, have strong risk identification ability and risk tolerance. Private fund managers and employees are fully aware of the private funds they manage, so they are also recognized as qualified investors.

Second, how to judge the legitimacy of private equity funds?

1. Managers of various private equity funds shall go through the registration and filing procedures through the private equity fund registration and filing system of China Asset Management Association. Otherwise, they shall not engage in private equity fund business activities.

2. Those who participate in the private placement must be qualified investors. Qualified investors are defined by the CSRC: the minimum subscription is 654.38+0 million, and Tuo Dou is not allowed (money from relatives and friends is not allowed). This definition means that you have to invest some of all your money. You can't put eggs in one basket, let alone other people's eggs. (In the United States, investors are required to have securities assets of more than $5 million, or an annual income of $200,000, or a total of $300,000 for the couple.

In China, because there is no good property registration system, it is difficult to define family property, so the definition of qualified investors in the financial sector is the minimum subscription of 6,543,800+100,000. Therefore, whether you are a qualified investor or not, it is basically deceptive to encourage you to invest in private placements below 1 10,000.

3. Private placement must not be publicized. The new "Fund Law" clearly stipulates that it is not allowed to publicize to unspecified objects through newspapers, radio stations, the Internet and other public media or lectures, reports and analysis meetings.

4. A contract must be signed between investors and managers to clarify the obligations and responsibilities of all parties. Please refer to the latest fund law for details. Pay attention to whether the contract elements are the same as those stipulated by law. Many fake private placement contracts are beautifully done, but a comparison is obviously false. Fourth, the new fund law stipulates that the number of private placements cannot exceed 200.

Third, the loss redemption of private equity funds.

For those loss-making funds, gay friends had better check the performance and fund manager changes in recent years.

For those funds with poor performance rankings, redemption can be considered.

The fund manager changes, or the core person of the investment research team of the fund company leaves the company. In these cases, you can also consider redeeming the funds in your hands;

In addition, many gay friends have a misunderstanding: "They are more willing to redeem funds with greater returns and temporarily hold funds with greater losses".

This is actually consistent with the "selling effect" of investors in stock trading, because when people are in a state of loss, they will be extremely reluctant and would rather take greater risks to gamble. In fact, those funds/stocks that make money for you may be good funds/stocks and worth holding for a long time; And those funds/stocks that are losing money, maybe you should "avoid them" as soon as possible.

What do private equity firms do? 3. The development of private equity funds.

1. Confirmation of specific objects: Generally, it is necessary to fill out a questionnaire survey to let investors know their risk identification and risk-taking ability, and make a written commitment that meets the qualified investment requirements.

2. Participate in the product promotion meeting: properly participate in the product recommendation meeting, and with the help of the organization, select the matching products according to their own capabilities.

3. Sign the risk disclosure: investors should be clear about the risks (such as special risks and general risks) and their own rights and interests of the selected products. This step is a bit cumbersome. To confirm the terms sentence by sentence, the relevant parties (investors, fund-raising institutions and managers) need to sign and seal.

4. Provide proof of assets or income: the financial assets of an individual investor shall not be less than 3 million yuan or the personal income in the last three years shall not be less than 500,000 yuan, so as to confirm that he is a qualified investor, and at the same time, it shall be clear that the products he has purchased will not be split. (Since the initial investment is at least 6.5438+0 million, the additional funds are at least 6.5438+0 million, or an integer multiple of 6.5438+0 million).

5. Sign a contract and make a payment: At this moment, you should know the authenticity of the cooperation information and the risks of the product. You are definitely a qualified investor. (This Agreement is made in triplicate, one for the investor, one for the manager and one for the custodian. Keep the voucher after payment and indicate the purpose of the funds).

6. Cooling-off period of investment: After the contract is signed, there will be a cooling-off period of not less than 24 hours. Sometimes, investing may be a hot head. During this cooling-off period, investors can cancel the contract, and fundraising institutions cannot contact investors actively; Step 7: Return visit confirmation: After the cooling-off period of investment, the non-sales personnel of the institution need to return visit to confirm the investors and check the core information of the investors one by one. If the investor knows nothing, he can also terminate the contract.

Second, the private equity fund certificate

1. Read the private trust contract carefully and sign the contract in duplicate after confirming that there is no objection.

2. Remittance: After filling in the account name, account number, bank and remittance amount of the other party, mark the words "XX subscribes to XX trust plan" in the remarks column or remittance purpose column. Pay attention to keep the receipt, which is an important proof to confirm your success in purchasing private equity funds.

3. Documents to be submitted: a copy of valid ID card (front and back), a copy of bank card or passbook (which must be consistent with the account name and account number of debit account), and a copy of debit note, wherein the ID card and bank card are in duplicate, and the copies are signed and confirmed.

4. Fill in the trust contract: when filling in the trust contract, the investor, the trustor, the beneficiary and the fund remitter must be the same person; The trust benefit distribution account and the copy of the bank card provided by you must be the same account.

5. Try to fill in the contract and complete the purchase procedures under the guidance of professional investment consultants.