People often say that "private fund" or "underground fund" is a kind of collective investment that is supervised by the competent department of our government and publicly issues beneficiary certificates to unspecified investors and privately invests from specific investors. I think trust products also belong to private equity funds.
When it comes to private equity funds, many people may feel strange, but when it comes to notorious "quantum funds" and "tiger funds", maybe you are not unfamiliar. These hedge funds, which wander like ghosts in the international financial market and make waves frequently, are the most typical private equity funds abroad. These financial "predators" repeatedly shot in the Southeast Asian financial crisis, which made us clearly feel their amazing ability. At the "2000 China International Symposium on Investment Fund Legislation" held at the end of last year, relevant persons discussed the relevant chapters in the fourth draft of People's Republic of China (PRC) Investment Fund Law, including a chapter on "raising funds from specific targets", involving details such as the number of investors, the minimum investment of investors, the establishment and management of funds, etc. Many insiders pointed out that this indicates that China has put accelerating the legalization and marketization of private equity funds on the important agenda. (How do ordinary retail investors control gold stocks in a strong position)
The so-called private equity fund refers to a fund set up by private placement to raise funds for a few institutional investors. Because the sale and redemption of private equity funds are conducted through private consultation between fund managers and investors, they are also called funds raised from specific targets. Analyze the real purpose of mainstream funds and find the best profit opportunities! )
Compared with Public Offering of Fund such as closed-end funds and open-end funds, private equity funds have very distinct characteristics, which makes private equity funds have incomparable advantages in Public Offering of Fund.
First, private equity funds raise funds in a private way. In the United States, children's funds and pension funds in Public Offering of Fund generally attract customers by advertising through public media. According to relevant regulations, private equity funds are not allowed to use any media to advertise, and their participants mainly join through so-called "reliable investment information" or direct knowledge of fund managers.
Secondly, in terms of fundraising targets, private equity funds are only targeted at a few specific investors, and the circle is small but not low. For example, in the United States, hedge funds have very strict regulations on participants: if they participate in the name of individuals, their annual income in the last two years will be at least $200,000; If you participate in the name of the family, the family's income in the past two years is at least 300,000 US dollars; If you participate in the name of an institution, its net assets will be at least $6,543,800+0,000, and the number of participants will be limited accordingly. Therefore, the investment goal of private equity funds is very strong, which is more like an investment service product tailored for middle-class investors.
Third, unlike Public Offering of Fund's strict information disclosure requirements, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater.
In addition, a notable feature of private equity funds is that fund sponsors and managers must invest their own funds into fund management companies, and the success of fund operation is closely related to their own interests. Judging from the current international practice, fund managers generally hold 3%-5% of the shares of the fund. In case of loss, the shares owned by the manager will be used to pay the participants first. Therefore, the promoters, managers and funds of private equity funds are as close as lips and teeth, and honor and disgrace are integrated with the interests of * * * *, which also solves the inherent weakness of managers' interests and incentive mechanism in Public Offering of Fund to some extent.
It is precisely because of the above characteristics and advantages that private equity funds have developed rapidly and occupied a very important position in the international financial market. At the same time, it has also trained investment masters like Soros and Buffett and international financial "snipers". In China, although there is no public and legal private equity investment fund at present, there have been many non-bank financial institutions or individuals engaged in collective securities investment business, and to a certain extent, they already have the characteristics and attributes that private equity funds should have. According to reports, the total amount of existing private equity funds in China is at least 200 billion yuan, most of which have been regulated by the relevant market regulations and management regulations of the United States, and a large number of industry elites and economists have gathered. But the fly in the ointment is that they can only live in the underground world without sunshine in obscurity. With the approach of China's entry into WTO, the opening of China's fund market is not far off. According to relevant agreements, foreign capital can enter the China market within five years, and the fierce market competition in the future can be imagined. Therefore, many people of insight call for giving private equity funds a clear legal status as soon as possible, so that they can enter the sunshine zone as soon as possible. This is not only conducive to standardizing the management and operation of private equity funds, but also conducive to creating a fair, just and open market competition environment, reducing transaction costs, promoting financial innovation, constantly creating and enriching financial products and investment channels in the securities market, and meeting the increasingly diversified investment needs of investors.