The biggest difference between PE fofs and private equity funds is that it plays the dual roles of general partner (GP) and limited partner (LP): when facing investors, FOF plays the role of GP, managing funds for investors and choosing PE funds for investment; When faced with PE funds such as venture capital fund, M&A fund and growth fund, FOFs plays the role of LP and becomes an investor in various PE funds. PE FOFs originated from America 1975. In the 1990s, the large-scale rise of PE capital in the United States made PE FOFs expand rapidly. According to statistics, in 190, there were only 16 fofs in the US market, and the total assets under management were1400 million US dollars. By the end of 65,438+099, the number of fof reached 265,438+03, and the total assets under management reached 48 billion US dollars.
At the same time, gradually relax the investment field of PE FOFs, try to participate in PE secondary market investment to spread risks, and gradually form the advantages of FOF, such as broadening investors' special investment channels, rationally allocating assets, and balancing interests and risks.
In recent years, FOFs funds have developed globally, and expanded rapidly in Europe, Canada and other countries except the United States, and entered Asia in the 1990s. It developed slowly at first, and it didn't rise until 2005 with the rapid development of the capital market. In order to standardize the operation and filing management of equity investment enterprises established in People's Republic of China (PRC) (including equity investment parent funds targeting equity investment enterprises), the General Office of the National Development and Reform Commission issued the Notice on Promoting the Standardized Development of Equity Investment Enterprises (hereinafter referred to as the Notice on Promoting the Standardized Development of Equity Investment Enterprises) in 2065 10.
It specifically pointed out: "The number of investors is limited. The number of investors in an equity investment enterprise shall comply with the provisions of the Company Law of People's Republic of China (PRC) and the Partnership Law of People's Republic of China (PRC). If the investor is an unincorporated institution such as a pooled fund trust or partnership enterprise, it shall check whether the final natural person or legal person institution is a qualified investor and calculate the total number of investors, except that the investor is a parent fund for equity investment. "
According to the requirements of "the principle of penetration of unincorporated institutions", that is, if the partners or shareholders of the fund are unincorporated institutions such as partnerships and trusts, it is necessary to get through the unincorporated institutions, check the legal persons or natural persons behind them, and calculate the number of investors. After getting through, the final investors must also meet the minimum capital contribution requirements of 6,543,800 yuan for a single investor. At present, the only exception to the principle of penetration of unincorporated institutions is the "equity investment parent fund" filed with the National Development and Reform Commission. Since most domestic private equity funds can't meet the minimum investment requirement of 6,543,800 yuan per investor, "equity investment parent fund" has become the last straw. Many insiders predict that Circular No.2864 will make the parent fund as an institutional investor usher in the spring of rapid development in China.