Private equity investment (PE for short) refers to an investment method of investing in unlisted shares or non-publicly traded shares of listed companies. From the perspective of investment methods, private equity investment refers to the equity investment in private enterprises, that is, unlisted enterprises. In the process of transaction implementation, the future exit mechanism is considered, that is, through listing, mergers and acquisitions or management buyback, the shares are sold for profit.
Direct investment refers to the way that investors directly set up factories and shops to engage in business, or invest a considerable number of shares in enterprises, thus having operational control over enterprises. The main feature of direct investment is that investors have permanent interests in enterprises in another economy, which means that there is a long-term relationship between direct investors and enterprises, and it has a considerable impact on enterprise management. Direct investment can take the form of directly setting up branches abroad, or buying a certain proportion of shares of foreign enterprises.
Industrial investment fund is a big concept, which is usually called venture capital and private equity investment fund abroad. Generally speaking, unlisted enterprises with high growth potential invest in equity or quasi-equity, and participate in the operation and management of the invested enterprises, so as to realize capital appreciation through equity transfer after the invested enterprises mature. According to the different stages of the target enterprise, industrial funds can be divided into seed stage or early stage funds, growth stage funds, restructuring funds and so on. Industrial funds involve many parties, including fund shareholders, fund managers, fund custodians, accountants, lawyers and other intermediary service institutions, among which the fund manager is the institution responsible for the specific investment operation and daily management of the fund.
The above information is provided by the shopkeeper Xue.