The biggest highlight of the opinion draft is the clear asset regulations for private equity buyers. Only when a natural person investor meets any one of the three conditions can he buy a private equity fund: the total financial assets of an individual or family are not less than 2 million yuan, the average annual income of an individual in the last three years is not less than 200,000 yuan, and the average annual income of a family in the last three years is not less than 300,000 yuan. In terms of enterprises and institutions, the opinion draft stipulates that companies, enterprises and other institutions must meet the conditions of net assets of not less than 6.5438 billion yuan when purchasing private equity funds.
In addition, the opinion draft stipulates that whether it is a natural person investor or an enterprise investor, the amount invested in a single private equity fund shall not be less than 6,543,800 yuan.
What are the investment risks of private equity funds?
First, the risk of opaque information. Because private equity funds do not have strict information disclosure requirements, information opacity is the biggest risk of private equity funds. Investment planning, fund allocation, project tracking management and all other processes involving investment operation management may have insufficient information disclosure.
Second, investors' ability to resist risks is low. Many investors participate in private equity investment because they value the high expected annualized expected return of private equity funds, but there are also high risks behind the high expected annualized expected return. Many investors do not have the corresponding ability to resist risks, so investment needs to focus on the risks of such private equity funds.
Risks of private equity funds caused by third-party fund managers. Due to the lack of strict industry access standards, there are obvious differences in fund managers' management ability, industry status and market recognition. In the same market environment, some fund managers can bring expected annualized expected returns to investors with accurate investment, while some fund managers may cause losses to investors.
Fourth, higher moral hazard. Fund projects are generally established in the form of partnership. However, due to professional, geographical and time constraints, investors can not effectively supervise and manage the project, so moral hazard is also a private equity risk that investors often encounter.
Fifth, project financing lacks professionalism. Project financing generally requires high practical experience and professional ability, but some private fund managers or management teams are not competent enough to effectively monitor and manage project financing.
Sixth, illegally absorb the risk of public deposits. Some private equity funds will attract investors by deliberately exaggerating the expected annualized expected returns and concealing projects. These private placements are likely to illegally absorb public deposits.