Because private fund companies can only raise funds privately, its most striking feature analysis is that they can't buy and sell publicly. For example, you can't issue stocks online to attract investors openly. Then the second characteristic of private equity fund is formed: the liquidity base is very poor, which is worse than public offering.
The third main feature of private equity funds is that the threshold of private equity funds in China is 654.38+0 million, so there are fewer investors. In addition, because there are fewer investors, the investment objectives of private equity funds will be more targeted and can better meet the specific investment requirements of customers. This is its fourth characteristic.
The fifth characteristic of private equity fund is that it does not have as many information disclosure requirements as Public Offering of Fund. Therefore, its investment is more hidden, and it is not easy to be tracked by the market, and it may get higher investment returns.
Compared with public funds, the government's supervision of private funds is relatively loose, as long as enterprises pay taxes and are legal. Therefore, the investment of private equity funds is more flexible. Basically, managers can play whatever they want, as long as they can make money.
For example, the investment in a single stock in Public Offering of Fund cannot exceed 65,438+00% of the total investment, and private equity funds can even be listed in a single transaction.
The biggest advantage of private equity funds is that fund managers and investors stand on the same front. Because every private fund manager is a member of the fund investors.
In addition, due to the imperfection of domestic credit system, the proportion of fund managers' contribution is very high, ranging from 10% to 30%. Unlike abroad, 3% to 5% will do.
Second, enterprises have different regulations on economic benefits. Public Offering of Fund relies on management fees, which has nothing to do with fund investment income, while private equity funds rely on overall performance.
This is a bit like a "KPI" assessment: generally speaking, the performance of private equity funds is paid at 20% of profits. Earned 1 100 million and took 20 million.
Third, if the fund loses money, the fund manager will pay first, and other investors will pay the remaining losses. So when the fund loses money, the biggest loss can be the fund investment manager.
For example, a 500 million private equity fund, the manager invested 50 million. After liquidation, the fund lost 20%, or 654.38 billion yuan. It stands to reason that the 50 million of private fund managers lost 20%, so there is still 40 million left. But in fact, the manager can't take out a dime, because the remaining 40 million will be used to compensate for the loss of 65.438+0 billion first. As for the remaining 60 million losses, other investors will bear them.
Data source private placement network