There are many forms of private equity funds, including corporate private equity funds, contractual private equity funds, virtual private equity funds, combined private equity funds, trust private equity funds, limited partnership private equity funds and so on.
Corporate private equity fund is a formal and standardized operation of various forms, with a complete corporate structure. This form of private equity fund can be easily established in China, but it has the disadvantage of double taxation.
The organizational structure of contractual private equity funds is relatively simple, such as taking securities companies as fund managers and choosing banks as custodians, but it is difficult to avoid the approval and supervision of securities management departments in its establishment and operation.
Virtual private equity funds are more like entrusted financial products of investors, because this form of private equity funds will sign entrusted financial agreements with customers. But it works like a fund. Moreover, it can avoid the approval and supervision of the securities management department on the establishment and operation of the fund, and it is flexible to set up.
Combined private equity fund combines the above three types of private equity funds to form a private equity fund portfolio, which can integrate the advantages of the first three types of private equity funds, such as the combination of corporate and contractual types.
Trust private equity fund is a private equity fund that invests in equity or securities through trust plan.
Limited partnership private equity fund: the main organizational form of private equity fund in the United States.