The corporate private equity fund has a complete corporate structure and its operation is more formal and standardized. In China, it is easy to set up private equity funds for enterprises, such as stock winning investment companies.
Semi-open private equity funds can also operate conveniently in a flexible way, and their investment strategies can be more flexible without strict approval and supervision.
The state prohibits any private equity fund company or individual from engaging in illegal private equity activities in any name. Otherwise, it will be suspected of money laundering, defrauding the state finances and disturbing the financial order.
Extended data:
Private equity funds and equity companies;
1. Establish an investment company whose business scope includes securities investment.
2. The number of shareholders of the investment company should not be too large, and the investment amount should be relatively large, which not only ensures the nature of private placement, but also has a large scale of funds.
3. The fund of the investment company is managed by the fund manager. According to international practice, managers charge fund management fees and interest incentive fees to enter the operating costs of investment companies.
4. The registered capital of an investment company is re-registered once a year at a specific time point, and nominal capital increase and share expansion or capital reduction and share reduction are carried out. If necessary, investors can redeem their capital contribution at a specific time of the year.
5. At other times, investors can transfer the equity agreement or trade in the OTC market. "Investment company" is essentially a private equity fund of enterprises, which can be raised at any time, but can only be redeemed once a year.
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