All kinds of private fund managers shall apply to the fund industry association for registration. After all kinds of private equity funds are raised, they should go through the filing procedures with the fund industry association. However, the registration of fund industry associations does not constitute recognition of the investment ability and continuous compliance of private fund managers, and does not serve as a guarantee for the safety of fund property.
2. Private equity funds Non-debt private equity funds shall not promise investors that their capital will not be lost or promise the minimum income. Private equity funds often do not have the characteristics of fixed-income securities.
3. Flexible methods In order to avoid the high risk of equity investment, the investment methods of private equity funds are becoming more and more diversified. In addition to pure equity investment, there are disguised equity investment methods and portfolio investment methods with equity investment as the mainstay and creditor's rights investment as the supplement;
4. Private placement focuses on "matching" private equity fund investment, establishes a qualified investor system, and sets appropriate qualified investor standards from three aspects: asset size or income level, risk identification ability and risk tolerance, and single minimum subscription amount.
At the same time, the regulatory system requires that investors' risk identification ability and risk-taking ability be evaluated, and investors' written commitment meets the conditions of qualified investors; Require private equity fund management institutions to rate the risks of private equity funds by themselves or entrust third-party institutions, and choose to recommend private equity funds to investors with matching risk identification ability and risk-taking ability; Require investors to fill in the risk questionnaire truthfully and promise assets or income; Investors are required to ensure that the source of entrusted funds is legal, and they are not allowed to illegally pool other people's funds to invest in private equity funds.
5. Private placement should "transparently" formulate and sign fund contracts to fully reveal investment risks; Arrange fund custody according to the fund contract. If it is not managed, the institutional measures and dispute resolution mechanism for ensuring the property safety of private equity funds shall be clearly defined; Adhere to professional management, establish and prevent conflicts of interest and transfer of interests; According to the contract, truthfully disclose information to investors.
6. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.