Usually, the manager will first conduct the initial recruitment of private equity funds. After getting enough investment, private equity investment funds have been established one after another, and various systems have been established for the funds, the most important of which is the establishment of investment decision-making Committee and fund investment management team. When the fund finds suitable investment opportunities, it will conduct due diligence on the invested enterprises. Under the supervision of lawyers, accountants and other intermediaries, if the target enterprise meets the fund manager's requirements for risk assessment and return on investment assessment, the fund will sign an equity investment agreement with the target enterprise, and the fund will make equity investment in the enterprise and provide funds to it.
In the future, dividends will be paid every year according to the operating conditions of the target enterprises. Under normal circumstances, the foundation invests in enterprises with listing prospects, so after the fund is stationed, it often begins to make various plans for the listing of the target enterprises. After the company goes public, the fund sells its shares after the lock-up period to achieve a successful exit.