The first is the source of funds. They all raise capital by privately raising funds from specific objects as the total capital of venture capital or equity funds. Sources of funds include individual investors and institutional investors.
Second, all the investments are potential unlisted enterprises.
What's the difference between private equity fund and venture capital?
1, private equity fund: Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which is used to refer to the investment in any kind of equity assets that cannot be freely traded 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.
2. Venture capital: VC for short is a conventional concept with specific connotation in China. Actually, it is more appropriate to translate it into venture capital. Venture capital in a broad sense refers to all investments with high risks and high potential returns; In a narrow sense, venture capital refers to the investment in the production and operation of technology-intensive products based on high technology. According to the definition of American National Venture Capital Association, venture capital is a kind of equity capital invested by professional financiers in emerging, rapidly developing enterprises with great competitive potential.
3. The difference between the two: the private equity fund industry originated from venture capital, and in the early stage of development, small and medium-sized enterprises mainly started businesses and expanded financing, so venture capital became synonymous with private equity investment for a long time. Since 1980, the popularity of large M&A funds has given private equity funds a new meaning, and the main difference between them is in the investment field. The investment scope of venture capital fund is limited to the financing of small and medium-sized high-tech companies in the initial stage and expansion stage. Private equity funds mainly invest in mature enterprises that have formed a certain scale and generated stable cash flow, which is the biggest difference between them and venture capital funds.
How to buy private equity funds
1, you should fully understand the nature and operation style of this private equity fund, including the team composition of investment managers, past performance, and the strength of custodian banks, trust companies and securities companies.
2. Read the trust fund subscription contract and trust plan instructions carefully, and sign the contract in duplicate after agreeing without objection. Note that the contract generally needs to fill in the account number you want to remit money, and reserve the account number to be returned when redeeming funds in the future. Many trust companies require that the payment account, the signatory of the trust contract and the final payment account must be the same account with the same name.
3. Send the money to the bank. After filling in the name of the counterparty's account, counterparty's bank and remittance amount, please indicate "Zhang San subscribes to XX Trust Plan" in the remarks column or remittance purpose column. Pay attention to keep the original remittance and two copies. This is an important proof to confirm your successful participation in the trust plan.
4. Documents to be provided. Including the original and photocopy of my ID card, the original and photocopy of remittance account (original and photocopy of remittance account), and the photocopy of remittance receipt, etc. Generally, these copies need to be signed by myself and confirmed by fingerprints.
After receiving all the information and confirming that the subscription funds and subscription fees have arrived, the trust company will notify the bank to subscribe the subscribers' trust funds with the trust unit, and send the contract sealed by the trust company and the confirmation letter of trust participation to the subscribers of the trust funds about 65,438+00 working days after the subscription of the private equity funds.
legal ground
Interim Measures for the Supervision and Administration of Private Investment Funds
Article 3 Private equity fund business shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national and social public interests.
Article 4 Private equity fund managers and institutions engaged in private equity fund custody business (hereinafter referred to as private equity fund custodians) manage and use private equity fund property, and institutions engaged in private equity fund sales business (hereinafter referred to as private equity fund sales institutions) and other private equity fund service institutions shall fulfill their duties and fulfill their obligations of honesty, credibility, prudence and diligence.
Private equity fund practitioners shall abide by laws and administrative regulations, and abide by professional ethics and codes of conduct.