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Investment funds of real estate private equity funds
It has the characteristics of strong liquidity and is convenient for investors to control risks. The advantage of this kind of fund is that it is more extensive for investors. However, the United States has some restrictions on the investment direction of open real estate investment funds. Generally, such funds cannot directly invest in real estate assets, but participate in real estate investment by investing in real estate-related financial products such as real estate investment trusts and real estate-related bonds, and their investment ratio in real estate is required to reach more than 90% of the fund scale.

Generally, it consists of a general partner (fund management company) with unlimited liability and one or more partners (fund investors) with limited liability. Mainly raise funds by private placement, and use the raised funds for real estate investment. In this form of fund organization, the general partner is responsible for the operation and management of the fund and bears unlimited liability for the fund debts; Limited partners have ownership but no right to operate, and do not bear unlimited liability. The investment direction of limited partnership real estate investment funds is strictly limited to real estate-related securities (including stocks of real estate listed companies, real estate backed bonds, mortgage bonds, etc.). ) and real estate assets Real estate assets directly invested by real estate investment funds are generally high-end apartments, office buildings, warehouses, factories and commercial buildings that can generate relatively stable cash flow. The general partner of a limited partnership fund is liable for unlimited repayment, so it is generally stipulated that the fund will not buy the property in the form of debt when initiating the establishment of the fund, unless the property invested by the fund needs renovation, maintenance and other measures to improve the property status, and the fund itself has difficulties in cash flow, appropriate financing can be carried out, but the financing ratio generally does not exceed 25% of the value of the investment property.