Generalized equity investment fund is equivalent to generalized venture capital fund. Generally speaking, the equity investment fund we talk about tends to be broad, while the venture capital fund tends to be narrow. M&A investment funds and venture capital funds (in a narrow sense) are the two mainstream categories of the above two types of funds, while M&A funds originated from venture capital funds and gradually separated with the expansion of their scale.
2. How to distinguish M&A investment funds from venture capital funds?
How can we accurately understand the unique operation mode of M&A investment fund and distinguish it from venture capital fund? Generally speaking, venture capital fund is "incremental capital supply to support enterprise creation"; M&A investment fund (a typical equity investment fund) is "transferring equity to support enterprise reconstruction".
Completely different from venture capital funds, M&A investment funds are mainly due to the major equity structure problems of enterprises, as well as the reconstruction of related control rights and enterprise organization and management systems. At this time, it is necessary to transfer the existing stock equity through M&A investment fund, promote the reorganization of the enterprise equity structure, and finally straighten out the control right of the enterprise and realize the reconstruction of the organizational management system. In this way, the problems encountered by M&A funds and the operation mode they need to adopt are essentially different from those of traditional venture capital funds.