First, the concept of private equity funds
Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.
Second, private equity funds are legal in China.
On July, 2065438+2004 1 1, the CSRC officially promulgated the Interim Measures for the Supervision and Administration of Private Investment Funds, which listed qualified investors in a separate chapter. It is clear that the investor amount of private equity funds cannot be less than 6,543,800 yuan.
According to the new requirements, "qualified investors" should have the corresponding risk identification ability and risk-taking ability. The amount invested in a single private equity fund cannot be less than 6,543,800 yuan. The investor's personal net assets are not less than 6,543,800 yuan, personal financial assets are not less than 3 million yuan, and the average annual income in the last three years is not less than 500,000 yuan.
Because institutional investors, such as enterprise annuities, charitable funds, social security funds and investment plans, which are established according to law and supervised by the State Council financial supervision and management institutions, have strong risk identification ability and risk tolerance. Private fund managers and employees are fully aware of the private funds they manage, so they are also recognized as qualified investors.
Three. Relevant legislative procedures
"People's Republic of China (PRC) Securities Investment Fund Law" was adopted at the 5th meeting of the 10th NPC Standing Committee on 28 October 2003/KLOC-0. Since its launch in July 2009, the news that private equity fund management has been included has attracted much attention. 20 12 "People's Republic of China (PRC) securities investment fund law (revised draft)" submitted to the National People's Congress Standing Committee (NPCSC) for deliberation on June 26th.