The government set up private equity funds in order to obtain the local market and implement "private equity", so the state set up private equity funds.

Private equity fund is a fund engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger.

Conditions for establishing a fund-based enterprise:

The name of "1" shall conform to the Regulations on the Administration of Name Registration, and the words "investment fund" are allowed in the names of investment enterprises that have reached the scale.

"2" The terms in the industry name can use the words "venture capital fund, venture capital fund, equity investment fund and investment fund". As an administrative division, "Beijing" is allowed to be used between trade names and industry terms.

"3" Fund type: the registered capital (contribution) of the investment fund company is not less than 500 million yuan, all of which are contributed in cash, and the paid-in capital (contribution) at the time of establishment is not less than 6,543.8 billion yuan; The registered capital shall be fully paid in accordance with the Articles of Association (partnership agreement) within 5 years. "

"4" The investment amount of a single investor is not less than 6,543,800,000 yuan (except for the general partner in a limited partnership).

"5" At least three senior managers have experience in the management and operation of equity investment funds or related business experience.

"6" The business scope of fund enterprises is approved as: investment, investment management and non-securities business consulting.