To set up a private equity fund company, it is necessary to cancel the company and obtain the relevant permission from the place where it is located. According to different jurisdictions, different licenses and certificates may be required. Here's how to set up a private equity fund collected by Bian Xiao. Welcome to read and share. I hope you will like it.

How to set up private equity fund

The name shall comply with the provisions on the administration of name registration, and the words investment fund are allowed to be used in the names of investment enterprises that have reached the scale.

The trade terms in the name can use the words "venture capital fund, venture capital fund, equity investment fund and investment fund".

The business scope of fund enterprises is approved as investment, investment management and non-securities business consulting.

At least 3 senior managers have experience in equity investment fund management or related business.

The registered capital of fund investment fund companies is not less than 500 million yuan, all of which are contributed in cash. At the time of establishment, the paid-in capital shall be no less than 654.38 billion yuan, and the registered capital shall be fully paid in five years as promised in the Articles of Association.

The investment of a single investor is not less than 6,543,800 yuan.

Introduction of Private Equity Fund

Private equity fund refers to the investment in equity assets that cannot be traded freely in the stock market. The investment contents of this investment mainly include non-listed company's equity or listed company's non-publicly traded equity, and the forms mainly include leveraged buyout, venture capital, growth capital, angel investment and mezzanine financing. Private equity funds do not pursue equity gains, but sell equity through equity transfer paths such as listing, management buyouts and mergers and acquisitions.

Advantages of private equity funds

Private equity fund, but with wide channels. The scope of private equity funds is narrower than that of Public Offering of Fund, but they are all institutions or individuals with strong capital strength and high quality of capital composition, which makes the funds raised by them not necessarily inferior to that of Public Offering of Fund in quality and quantity. It can be an individual investor or an institutional investor.

Equity investment, but in a flexible way. In addition to pure equity investment, there are also disguised equity investment methods and portfolio investment methods with equity investment as the mainstay and creditor's rights investment as the supplement. These methods are a great progress of private equity in investment tools and investment methods in recent years.

The risk is high, but the return is rich. The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process.

Participate in management, but do not control the enterprise. Generally speaking, private equity funds have a professional fund management team with rich management experience and market operation experience, which can help enterprises to formulate development strategies that meet market demand and improve their management level.

How do individuals participate in private equity funds?

Choose a fund that suits your investment preferences. For example, for more radical investors, you can choose medium and high-risk funds, and for more stable investors, you can consider medium and low-risk funds.

Choose a fund with strong management ability of the fund manager, and the trend of the fund is often better.

If you choose a fund with a low valuation, the lower the valuation, the smaller the bubble, and the smaller the risk that investors bear. At the same time, funds with lower valuations have more room for growth in the later period.

When investors buy funds, they should set stop-loss and profit-taking positions to control their risks.

Who can buy private equity funds?

Private equity funds are investment tools for high-net-worth individuals, so wealthy high-net-worth individuals are often the main buyers of private equity funds.

High net worth individuals are more likely to buy private equity funds for the following reasons.

First of all, high-net-worth people have certain advantages in wealth accumulation. They have high investment ability and rich sources of funds.

This enables them to invest in private equity funds, which also means that they have relatively high risk tolerance.

Secondly, compared with traditional investment channels, the risk-return ratio of private equity funds is higher.

For high-net-worth people who pursue high returns, private equity funds provide more investment opportunities and richer return potential, thus attracting their attention and purchase.

Finally, private equity funds have certain advantages in investment strategy and flexibility.

High-net-worth people usually have strong personalized needs in financial planning, and they hope to achieve personalized investment objectives and risk control through private equity funds.

Therefore, the flexible investment strategy and product characteristics of private equity funds can meet their personalized investment needs.