What are the dividend distribution methods of private equity funds?
Dividend ways of private equity funds: one is split, and the other is dividend. According to the relevant regulations, the dividend distribution of private equity funds should meet the following conditions: 1), after the private equity funds sell profitable stocks, they will get profits; 2) The fund's income in the current year can only be distributed after making up for the losses in previous years; 3) After the distribution of fund income, the net value of each fund share cannot be lower than the face value; 4) If there is a net loss in the fund investment year, the fund income will not be distributed. After meeting the above conditions, the dividend depends on the investment strategy of the fund manager. If the fund manager thinks that the stocks held by the fund have room for long-term appreciation, he may not pay dividends. See the fund contract or prospectus for specific dividend terms. Article 3 of the Interim Measures for the Supervision and Administration of Private Investment Funds stipulates that the business of private investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national and social public interests.