M&A funds are more likely to raise funds in a private way and invest by transferring the equity of crude oil of the target company.

M&A funds are generally raised in a private way, and the fund manager negotiates the sale and redemption with investors in private. The investment cycle is long, usually 3-5 years. According to historical data, the investment and withdrawal of international M&A funds usually take 5 to 10 years, and the acceptable annualized internal rate of return (IRR) is about 30%.

M&A fund is a private equity fund, which is used to acquire enterprises and gain control of the target enterprises. The common operation mode is that after merger and acquisition, enterprises will be listed or sold their shares through reorganization, improvement and promotion, so as to obtain rich profits. This mode appears mostly in MBO and MBI.