1, general private equity fund, LP is 50 people.
2. The number of contractual private equity funds dao and LP is 200.
3. Private equity funds set up trust, that is, taking trust as LP, which can effectively break through the limit of 200 people.
Why should it be restricted?
Private investment is strictly restricted in China, because private fund-raising can easily become "illegal fund-raising". The difference between them lies in whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is classified as illegal fund-raising. If private investment is not restricted, many people with low incomes will flock to private investment, and once the investment fails, there may be greater risk of loss. Will affect the normal life of this group, and then affect social stability. Therefore, the Interim Measures for the Supervision and Administration of Private Equity Funds limits the number of people raised by private equity funds.
Article 11 of the Supervision Measures stipulates: "Private equity funds shall be raised from qualified investors, and the cumulative number of investors in a single private equity fund shall not exceed the specific number stipulated by the Securities Investment Fund Law, the Company Law, the Partnership Enterprise Law and other laws." Obviously, the number of investors in corporate and partnership private equity funds should be bound by the Company Law and the Partnership Enterprise Law, and should not exceed 50 (the number of investors in joint-stock private equity funds should not exceed 200). For contractual private equity funds, in the absence of other laws, the Securities Investment Fund Law (hereinafter referred to as the Fund Law) should be applied.
Article 88 of the Fund Law stipulates: "Non-public offering funds shall be raised from qualified investors, and the cumulative number of qualified investors shall not exceed 200", that is to say, the maximum number of investors of "contractual" private equity funds shall not exceed 200, which breaks through the limit of 50 (limited) corporate and partnership funds. This breakthrough is of great significance to fund participants, especially fund managers and sales service agencies. While expanding the scale of the fund, it will also benefit more investors. Therefore, the number of private equity investors varies according to different fund types.