I. Equity investment Equity investment usually means holding a company's stock for a long time (at least one year) or investing in a company for a long time, with a view to controlling the investee, exerting a significant influence on the investee, or establishing a close relationship with the investee in order to diversify business risks. Equity investment can be divided into the following four categories: control right refers to the right to decide the financial and business policies of an enterprise and obtain benefits from its business activities; * * * having control refers to the control of an economic activity according to the contract; Significant influence refers to the right to participate in the decision-making of enterprise financial and operating policies, but not to decide these policies; No control, no * * * same control, no significant impact. Second, Private Equity investment Private equity investment is expressed as "private equity" in English, which 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. , profit from the sale of shares. Private equity investment can provide valuable funds for the start-up and sustainable development of emerging companies, promote the upgrading of industrial structure and consumption level, and expand employment opportunities. Third, the extraction standard of private equity investment management fee The management fee ratio of private equity investment funds is a necessary clause in the limited partnership agreement. In practice, many limited partners don't know much about the private equity investment industry, and the management fees mentioned by general partners often take a long time to figure out. Because in practice, the general partner is usually a fund management company (there are also fund management limited partnerships, but they are actually controlled by the general partner), here is just to introduce the industry practices and practices. Management fee is the fee charged by general partners to limited partners in private equity investment funds, which is generally used to pay the daily expenses of fund management companies, such as company registration fees, office space rental fees, personnel salaries, travel expenses, etc. These are very important for the normal operation of funds. As for the proportion of management fee, the general practice in the industry is 2% of the total investment of limited partners, and there are some arrangements that increase or decrease with time. For example, the management fee is 2% in the first 1-2 years, and it will be accrued according to 2% of the actual investment in subsequent years or gradually decreased to 1.5%. In addition, there is an arrangement that the management fee will decrease with the decrease of the fund scale managed by the fund management company. Usually, the main factors that determine the proportion of management fees are: the size and type of the fund, the personnel employed, the location and size of the rented office, and the duration of the fund. The most important thing is to look at the agreement between the two parties in the limited partnership agreement. In addition, it should be noted that in the operation of the fund, in addition to some daily expenses paid by the management fee, the general partner will also incur some expenses, which are usually borne by the limited partner, mainly including: the cost of hiring legal counsel, the cost of hiring auditors, the cost of regularly reporting the fund performance to the limited partner, and the agency fee paid to the investment project intermediary. But now most general partners and limited partners will agree to include all these expenses in the investment cost, and then deduct them accordingly in the final income distribution. Article 12 of the Measures for the Administration of Private Equity Assets of Securities and Futures Institutions stipulates: "An investment manager shall obtain professional qualifications according to law and have more than three years of relevant business experience in investment management, investment research and investment consulting. , has a good record of integrity and professional ethics, and has not been subject to major administrative supervision measures or administrative punishment by the regulatory authorities in the last three years. " According to the above analysis, the extraction standard of private equity investment management fee is: in general, 2% of the total investment of limited partners is extracted, but in some cases it will change with the length of time. In addition, in the process of private equity fund operation, in addition to daily expenses, the expenses incurred by general partners are usually borne by limited partners.