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Can a private equity fund (PE) be entrusted to two management companies at the same time?

1. PE can be composed of two GPs. Article 61 of the Legal Enterprise Law stipulates: "A limited partnership enterprise shall have at least one general partner."

second, the performance appraisal can extract the daily management fee and calculate the performance reward according to the performance of the share managed by a GP (that is, the funds invested by the GP). The disadvantage of this assessment method is that it will lead to malicious competition between two GPs, and the investment quality may be problematic. It can also be distributed in a fixed proportion according to the prior agreement. However, the latter method is easy to raise lazy people, and the responsibilities, rights and interests are not equal. If you have to choose between the two methods, you can take the former assessment method, but the monitoring of LP should be strengthened, and the proportion of funds managed should be drawn in advance.

third, the appearance of two GPs is also a special case. This situation should be avoided as much as possible. If possible, two GPs can be combined into one GP. Shareholders of two GPs * * * jointly contribute to establish a GP.