What does private equity fund mean? Is it safe?
What does private equity fund mean? Is it safe? Buying a private equity fund is different from buying Public Offering of Fund. Private equity funds cannot be publicized and can only be sold to qualified investors. Equity investment is accompanied by high risks, and investment is risky, so the choice needs to be cautious. So what does private equity fund mean? Is it safe?
What does private equity fund mean? Is it safe? 1
Is private equity fund safe?
Private equity funds can generally be divided into sunshine private equity and general private equity.
Sunshine private placement is a trust company, and the license threshold of the trust company is relatively high, so the product funds issued are highly secure. But if products are linked to stocks, then we should be careful of the risks of the securities market itself.
Generally, the security of private placement is not as high as that of sunshine private placement, and it generally needs long-term observation and understanding before buying.
Generally speaking, it is safe to buy private equity funds. The security here refers to the private equity fund you bought, and you rarely run away with the money. However, private equity funds are also risky, and the risk is a bit high, because private equity funds are high-risk and high-yield equity investments, which are allowed by law.
What are the risks of private equity funds?
1, the risk of opaque information, private equity funds do not have strict information disclosure requirements.
2. The risk of illegally absorbing public deposits. Some private equity funds may deliberately exaggerate their income and conceal their projects to attract people to participate in the investment, thus exposing the funds to the risk of illegally absorbing public deposits.
3. The risk of mismatch in anti-risk ability. If you invest in private equity funds, you expect to get high returns from private equity funds, but you may not have the corresponding ability to resist risks, because when private equity funds neglect proper management, it is easy to lead to risk mismatch.
What does private equity fund mean? Is it safe? 2
1. Is it safe to invest in private equity funds according to law?
There is no absolute security guarantee in law;
1, private investment securities. Mainly invest in publicly issued stocks, bonds, futures, options, funds, etc. This kind of capital is relatively safe, because these investment targets are fair value, the investment is visible and the price is transparent and fair. In addition, there is bank fund custody, and private equity companies can't take out the money and spend it themselves, so the funds are very safe. However, specific to the target, the risk of investing in bonds is relatively small, and the risk of investing in futures and options is relatively large.
2. Investment equity private placement and venture capital private placement. Generally, this kind of equity is non-public, such as private placement, equity of some non-listed companies, and investment in the New Third Board market. Because the New Third Board is a market maker system and cannot be considered as a public transaction, it is also classified here.
Compared with the first type of funds, this type of risk is a little bigger, because the first type of investment market is strictly regulated and the funds are a closed loop. The second kind of supervision is relatively weak, and even if there is a bank for fund custody here, if the fund manager has bad motives and invests in an enterprise associated with him for interest transfer, the money can directly enter the invested enterprise, so the protection of bank fund custody is of little significance.
Therefore, this category is much worse in terms of capital security, and the risk is relatively large.
3. Other categories. Besides the above two categories, there are other categories. For example, you can invest in non-performing assets, accounts receivable, entrusted loans, trust loans, rental income rights and so on. Take non-performing assets as an example. If you think about it, you will know that this is a risky thing. If the investment is right, the rate of return is very high. If you make the wrong investment, you may lose money. Therefore, compared with the first two categories, this category is the most risky.
After understanding the above, we can sort out the risks of various private equity funds. The key is to see what kind of classification and what kind of target to invest in. For example, the risk of investing in stocks and bonds is relatively small, the risk of investing in equity and the New Third Board is moderate, and the risk of investing in non-performing assets is great. Similarly, in terms of the security of fund custody, only the security performance of the first category can be guaranteed, and many of the second and third categories cannot be guaranteed.
Second, private equity funds usually stipulate:
1, only qualified investors can buy it (roughly meaning that the family's net financial assets should be above 3 million or my annual income in the last three years should be above 400,000).
2. The number of people raised shall not exceed 200. If you buy too much, don't sell it.
3. Private equity funds generally start at 6,543,800 yuan.
From the above provisions, we can see from the side that the risk of private equity funds is actually much greater than that of public offering. The reason why you want to be a qualified investor and invest 1 10,000 yuan means that you must have money to buy it. On the one hand, rich people have more money and can't afford to lose. On the other hand, rich people basically have financial knowledge and a strong sense of risk. However, the requirement that the number of people raised should not exceed 200 shows that in the case of substantial losses in the fund, this number will not stand the storm, and it is not easy to form mass incidents, and it is easy to control when things happen.
What does private equity fund mean? Is it safe?
First, are private equity funds safe?
Regular private equity institutions will choose custodian institutions to deposit funds to avoid misappropriation of funds. Custody institutions must obtain custody qualifications issued by the state, ordinary banks, brokers, trusts, etc. Can be used as a trustee of private equity funds. But at the same time, we should understand that private equity investment is a high-risk and high-return investment, and private equity companies will not promise their benefits when investing.
Second, what is the source of funds for private equity funds?
At present, the investors of private equity investment funds in China are mainly private enterprises and wealthy individuals; Under the mature foreign market conditions, the private equity investment industry is mainly funded by institutional investors, including pensions, securities funds, financial institutions and insurance institutions. On the other hand, China residents have few investment channels and low investment returns. The traditional investment methods of residents are still savings, national debt, funds, stocks and real estate. Broadening the sources of funds for private equity investment is conducive to providing more choices for residents to increase their property income.
The sources of funds for the private equity investment industry will gradually establish a diversified fund source system including financial institutions, overseas capital, insurance funds, social security funds, enterprise annuities, enterprise funds, wealthy individuals and social idle funds, so as to enrich the construction of China's multi-level capital market system and better serve the transformation, upgrading and development of the national economy.
Third, how much is the private equity fund?
1. Ways to raise funds
Private placement shall not be publicized directly or indirectly to unspecified objects by publishing announcements in the media (including corporate websites), posting notices in the community, distributing to the society, sending short messages to the society, or holding lectures, lectures and other public or disguised forms (including placing recruitment brochures at the counters of commercial banks, securities companies, trust and investment companies and other institutions).
2. Recruitment objectives
2. 1. Threshold requirements
2. 1. 1. Specific objects with risk identification and tolerance;
2. 1.2. The limited partnership shall have no more than 50 partners;
2. 1.3. The National Development and Reform Commission's "Guidelines for the Filing Documents of Equity Investment Enterprises" proposes that the minimum contribution of a single investor to an equity investment enterprise shall not be less than100000 yuan. But this is not the final rule. Investors in private equity funds are limited, with strict restrictions and a relatively high starting point. Pay more attention when choosing. How much should private equity funds buy at least?
Investigate the company's comprehensive strength, the quality of shareholders and manpower, and the company's development goals and concepts; The overall level, stability and professionalism of the investment and research team; Investment performance and performance evaluation, on these points, private equity funds will make more profits because of hidden operation and less strict supervision.
The minimum threshold is 500,000. The general (multi-family) starting value is 6,543.8+0,000 yuan. The starting price is 2 million yuan. The starting price of a few private placements is 3 million yuan or even 5 million yuan.
2.2 Mode of contribution
All investors can only subscribe for their capital contribution with legal self-owned monetary funds, and may not invest in equity investment enterprises by entrusting an investor to hold it on their behalf.
2.3 Proof of assets Natural person investors should provide relevant proof of assets.
3. Other mandatory provisions for fundraisers.
3. 1. Fully reveal investment risks. Fundraisers must fully disclose investment risks and possible investment losses to investors.
3.2. Promise without return. The fund raiser shall not promise investors to recover the investment principal or get a fixed return.
Is it a private equity fund?
Don't belong.
According to the fund industry association, private equity investment fund is an investment activity in which funds and investors share risks and obtain venture capital income through active risk management.
The debt of the private equity fund property shall be borne by the private equity fund property itself, and investors shall share the investment income and bear the risks within the limit of their capital contribution.
What is the function of private equity fund? The role of private equity funds
What is the function of private equity fund? The role of private equity funds
When we bought the fund, did it ever occur to us that the fund has other functions besides making money for us? What is the function of the fund? Let me tell you what private equity funds do.
Let's look at the role of private equity funds:
First, dredge direct financing channels.
As an important form of direct financing, private equity investment funds can help small and medium-sized enterprises with high quality but not qualified for bank loans and listing financing to achieve financing and extraordinary development by virtue of their own advantages in information and management.
Second, promote the transformation of scientific and technological innovation achievements.
Because the investment and financing mechanism based on innovation, creation and entrepreneurship is the main investment direction of private equity funds, it has a keen sense of future emerging industries and the specialty and strength of marketing high-tech projects.
Third, promote the improvement of corporate governance structure.
In order to control investment risks and improve enterprise performance, private fund managers often intervene in the management of enterprises with large fluctuations in operating performance in the early stage of enterprise development, which objectively helps enterprises to continuously improve their governance level and put them on the right track of steady development as soon as possible. In this case, private equity fund, as a market supervision force, has played an important role in promoting the improvement of corporate governance structure.
Fourth, promote the adjustment and upgrading of industrial structure
As a financial tool to effectively integrate market elements such as capital, technology and management, private equity investment funds can promote the optimal combination of production factors and industrial upgrading, and promote economic restructuring.
Verb (abbreviation of verb) promotes the development of multi-level capital market.
Private equity investment funds generally focus on investment in the primary market. Through the professional vision and active intervention of venture capital institutions and private equity investment institutions, we will select and cultivate more outstanding enterprises for the secondary market and promote the development of China's small and medium-sized board and growth enterprise market.
Can private equity funds make entrusted loans?
1. Whether PrivateFunds can make entrusted loans Private equity investment (also known as private equity investment or private fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be freely traded in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value. Due to the particularity of private equity funds, loans can often be entrusted now. Second, the classification of private equity funds According to different standards, there are many types of private equity funds. There are only common investment targets here. From the international experience, the investment targets of private equity funds are very extensive at present. Taking the United States and Britain as examples, the investment objects of private equity funds include stocks, bonds, futures, options, warrants, foreign exchange, gold and silver, real estate, information software industry and venture capital of small and medium-sized enterprises. Investment ranges from money market to capital market to high-tech market, from spot market to futures market, from domestic market to international market. According to the above objects, it can be divided into three categories: 1, securities investment private equity fund: as the name implies, this kind of fund mainly invests in financial derivatives such as securities, and hedge funds such as Quantum Fund, Tiger Fund and Jaguar Fund are typical representatives. Basically, managers design their own investment strategies and initiate the establishment of open-end private equity funds, which can adjust the investment portfolio and change the investment concept in time according to the requirements of investors and the development trend of the market, and investors can redeem them according to the net value of the funds. Its advantages are that it can be tailored according to the requirements of investors, the funds are relatively concentrated, the investment management process is simple, a large number of financial levers and various forms of investment can be used, and the yield is relatively high. 2. Industrial private equity funds: These funds mainly focus on investment industries. Because fund managers have a deep understanding of certain industries such as information industry and new materials, and have extensive contacts, they can initiate the establishment of industrial private equity funds in the form of limited partnership. Managers spend very little money only symbolically, and most of them are paid a raise. Managers should bear unlimited responsibilities while obtaining large investment income. This kind of fund is usually closed for 7-9 years, and will be settled in one lump sum at maturity. 3. Venture private equity fund: its investment target is mainly the rights and interests of small and medium-sized high-tech enterprises in the initial stage and growth stage, in order to share the high income brought by their rapid growth. Its characteristics are long payback period, high income and high risk. Can private equity funds entrust loans? Private equity fund is a special investment method, which can't be invested through stocks, because this form makes it pay more attention to entrusted loans. Even if there are some restrictions on entrusted loans of surplus private equity funds, they cannot be prohibited. This kind of entrusted loan behavior is still happening, and everyone should pay attention to certain risks.