Corporate private equity investment fund is a legal person fund established mainly according to Company Law, Provisions on the Administration of Foreign-invested Venture Capital Enterprises and Interim Measures for the Administration of Venture Capital Enterprises. In this model, shareholders are investors and the final decision makers of investment, and each of them distributes voting rights according to the proportion of capital contribution. Take this model as an example: Lu Xin Chuangtou, the first listed venture capital company in China.
Second, the trust system
Trust private equity investment fund can also be understood as private equity trust investment, which means that the trust company invests the funds obtained under the trust plan in equity. Its establishment is mainly based on the Trust Law, Measures for the Administration of Trust Companies, Measures for the Administration of Collective Funds Trust Plans of Trust Companies (hereinafter referred to as the Trust Regulations) and the Operational Guidelines for Private Equity Investment Trust Business of Trust Companies. Trust-type private equity investment funds, in essence, launch a new trust plan through the trust platform, and use the funds raised by the trust plan to make corresponding direct trust investment. The advantages of adopting the trust system operation mode are as follows: with the help of the trust platform, a large amount of funds can be quickly concentrated to play the role of fund amplification; However, the shortcomings are: at present, the trust industry lacks an effective registration system. As the sponsors of the listing of enterprises, the shareholders of trust companies can't confirm whether there are problems such as holding relationship and related shareholding, and the regulatory authorities require disclosure to the actual holders of the trust.
Third, limited partnership.
The legal basis of the limited partnership private equity fund is the Partnership Enterprise Law, the Interim Measures for the Administration of Venture Capital Enterprises and related supporting laws and regulations. According to the provisions of the Partnership Enterprise Law, a limited partnership enterprise is established by more than two partners and less than fifty partners, and consists of at least one general partner (GP) and one limited partner (LP). The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall not carry out the partnership affairs or represent the limited partnership externally, but shall be liable for the debts of the partnership only to the extent of the capital contribution subscribed. At the same time, the Partnership Enterprise Law stipulates that a general partner may make capital contribution through labor services, and a limited partner may not make capital contribution through labor services. This provision clearly recognizes the value of the intellectual capital of the general partner as the manager, and embodies the advantages of the limited partnership system of "money and power". In operation, the limited partnership enterprise does not entrust the management company to manage the funds, but the general partner directly manages the assets and manages the enterprise affairs. The main advantages of adopting the limited partnership system are: (1) the property is independent of the personal property of each partner, the rights and obligations of each partner are more clear, and the incentive effect is better; (2) Only the partners are taxed to avoid double taxation.