To participate in private equity investment, individual investors must at least meet the following conditions:
1. Need a lot of capital: According to the actual situation in China, at least100000 capital is needed to participate in the investment.
2. Being able to take higher risks: According to incomplete statistics, only 2-3 private placements succeed for every 10 project, and the rest either quit or don't make money. Private equity investment pursues high returns in high risks. It can be said that PE is born. High risk? .
3. The term of capital investment needs to be guaranteed: generally, it can reach 3 to 5 years or longer, which belongs to medium and long-term investment.
In what ways can investors participate in private equity investment and share huge returns? What risk factors should investors pay attention to in this process?
There are three main forms of private equity funds under the existing legal framework in China: one is contractual private equity investment funds formed through trust plans; Second, corporate industrial funds specially approved by the National Development and Reform Commission, such as Bohai Industrial Fund in Tianjin; Third, all kinds of investment institutions that appear in the name of investment companies and operate in the same way as private equity funds, but such private equity funds are in a state of lack of regulatory laws. Individual investors generally participate in equity investment by purchasing private equity trusts, while the second and third methods are mainly institutional investors, and it is difficult for ordinary individual investors to participate.
Is the domestic equity investment market already? Drink too much porridge? In a typical seller's market, domestic enterprises with few listing conditions may regard price as the only bargaining chip for the winner when facing equity investment companies with a large amount of cash, instead of paying attention to the added value provided by funds such as post-investment management. Choose investment projects with perfect exit mechanism of equity investment. As far as equity investment is concerned, the most ideal way is, of course, the successful listing of the investment target (IPO), but the successful listing of enterprises is only a beautiful vision, and investors also need other exit channels, such as the selling mechanism, transfer mechanism and repurchase mechanism of equity.