Managers and securities companies, as securities custodians, issue and set up securities investment trust collective wealth management products in accordance with the Trust Law and the Measures for the Administration of Trust Plans for Trust Companies' Collective Funds.
Sunshine Private Equity Fund [1] mainly invests in the securities market, and regularly publicly discloses its net worth, which is legal and standardized. Sunshine private equity fund is a fund that invests in the stock market with the help of trust companies and regularly publishes performance reports. After being filed by the regulatory authorities, the funds shall be managed by a third-party bank. The difference between Sunshine Private Equity Fund and ordinary (so-called "grey") private equity funds is mainly standardization and transparency, because the issuance through trust company platform can ensure the safety of private equity subscribers' funds.
Simply put, Sunshine Private Equity Fund is a transparent and standardized private equity fund corresponding to Public Offering of Fund. But there are also risks in operation. [2]
type
Trust private equity funds generally exist in two forms: "structural" and "open".
Sunshine private equity funds generally only refer to private equity funds issued in an "open" way. The so-called openness means that fund subscribers need to bear all investment risks and enjoy most of the investment income, while private equity companies do not promise the income. The profit model of private fund management companies is generally about 2% of the total fund management fee, and 20% of the investment profit is used as commission income, which is also commonly known as the "2-20" charging model (2% management fee +20% profit commission). This 2-20 charging model is a popular charging model for private equity funds in the world.
"Structured" Sunshine Private Equity Fund refers to the structural division of beneficiaries into different categories, such as priority beneficiaries and general beneficiaries, special beneficiaries and general beneficiaries, and the distribution of benefits on this basis. This model is a typical Shanghai model.