M&A funds are mainly leveraged buyout funds. The operation of leveraged buyout funds has the following characteristics: First, from the perspective of investment targets, they are mainly mature enterprises. Second, from the perspective of investment methods, holding investment is usually adopted. Third, from the perspective of leverage application, leverage is often used, that is, leveraged buyouts are adopted. Fourth, from the perspective of investment income, it mainly comes from the equity appreciation brought by the appreciation of management. M&A fund invests in the stock equity of an enterprise by purchasing equity, without providing any funds for the enterprise. It is an investment method of ownership transfer, and the funds are obtained by the old shareholders who transfer the equity of the enterprise.

The operation of venture capital funds also has the following characteristics: first, from the perspective of investment objects, it is mainly unlisted growth venture enterprises. Second, from the perspective of investment methods, equity investment is usually adopted, and less investment is held. Third, from the perspective of leverage, there is generally no need to use leverage, and the fund's own funds are used for investment. Fourth, from the perspective of investment income, it mainly comes from the equity appreciation brought by the value creation of the invested enterprise. Therefore, the ACD entry is wrong.

Testing center: the difference between venture capital fund and M&A fund