1, subscription fee

Subscription fee is a one-time fee that investors need to pay when they subscribe for funds during the fund raising period. Subscription fees are mainly used for various expenses incurred during the recruitment period such as marketing, sales and registration.

2. Fixed management fees

Fixed management fees are the remuneration paid by investors to fund managers, including trust management fees, bank custody fees, attorney fees and a series of expenses incurred in the daily operation of private equity funds. The specific rate of management fee varies with different types of funds, usually about 2%/ year of the amount promised by investors.

3. Floating management fee

Floating management fee, also known as performance compensation, is the biggest source of income for private equity fund companies. Private equity funds should extract some profits as performance compensation to fund managers before distributing income, which is the most important income of fund managers.

4. Redemption fee

The raising period of private equity funds is generally 1-3 months, and it will enter a closed period at the end of the raising period. Usually, most private equity funds have redemption closure period and quasi-redemption closure period. The redemption period is generally 1-6 months, during which investors are not allowed to purchase or redeem.

Extended data:

The operation mode of private equity fund is equity investment, and the characteristics of equity investment include:

1, the return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.

2. Equity investment is accompanied by high risks. 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.

3. Equity investment can provide all-round value-added services. Private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also a key factor to attract enterprises.

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