Strictly speaking, the investment banking business of a financial services company is completely different from its private equity investment business, and the differences are as follows:
(1) Investment banks are banking financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital and project financing.
It is the main financial intermediary in the capital market, and the concept of investment bank abroad is more consistent with that of domestic securities companies.
(2) Private equity investment refers to equity investment in private enterprises, that is, unlisted enterprises, through private placement.
Private equity investment (PE) refers to equity investment in unlisted companies through private equity funds.
In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback. , profit from the sale of shares.
I. Investment banks:
An investment bank, also called an investment bank, is a financial institution corresponding to a commercial bank. In China's concept, investment banking is just a business.
Investment bank itself does not have a very accurate definition, in fact, it mainly refers to the issuance and underwriting of securities, financial advisers for mergers and acquisitions, etc.
In other words, the investment banking department of securities firms is what we often say, but in Europe and America, the concept of investment banking is bigger, which refers to the concept of enterprises with small capital, net assets and intermediary services as the main body.
An investment bank is a financial institution. The business of international investment banks includes: corporate financing, mergers and acquisitions, financial consultancy, etc. Investment banks are the main financial intermediaries in the capital market.
In China, investment banking business mainly includes: securities underwriting, securities trading, mergers and acquisitions, fund management, project financing, venture capital, credit asset securitization, etc.
Second, private equity investment:
From the perspective of investment methods, private equity investment refers to equity investment in private enterprises, that is, unlisted enterprises, through private placement.
In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback. , profit from the sale of shares.
From the perspective of investment methods, private equity investment refers to equity investment in private enterprises, that is, unlisted enterprises, through private placement.
In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback. , profit from the sale of shares.
From the perspective of investment methods, private equity investment refers to equity investment in private enterprises, that is, unlisted enterprises, through private placement.
In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback. , profit from the sale of shares.
Private equity investment (PE) refers to equity investment in unlisted companies through private equity funds.
In the process of transaction implementation, PE will consider the future exit mechanism, that is, through the company's initial public offering (IPO), mergers and acquisitions (M & amp； A) or MBO, etc
Simply put, PE investment means that PE investors look for excellent and high-growth unlisted companies, inject capital into them, obtain a certain proportion of their shares, promote the development and listing of the company, and then make profits through the transfer of equity.