The operation mode of financial products of Sunshine Private Equity Fund in banks is generally advisory and structured.
In the consultant mode, the trust company first establishes a corresponding trust plan, the bank designs and sells wealth management products to raise funds according to the trust plan, and the trust company hires a private equity company agreed by the bank as an investment consultant to invest in the capital market. Private equity firms need to invest their own funds in the trust plan, and make additional subscriptions with performance commission during its existence. Under this model, private equity fund companies actually operate as financial funds raised by banks. Trust companies can also design multiple sub-plans in a trust plan, hire multiple private equity companies to operate, and adopt the last elimination system to promote the survival of the fittest of private equity companies. The income generated by the trust plan shall be distributed among private equity fund companies, commercial banks and trust companies in accordance with the agreement, and the principal and income of investors shall be repaid.
Structured Sunshine Private Equity products actually adopt the structured classification of income rights, which are divided into priority investors and secondary investors at the product end. Investors are advised to buy different types of products according to different risk preferences.