Equity investment funds or equity investment enterprises may adopt self-management or entrust other equity investment enterprises or equity investment management enterprises to manage. The managed equity investment enterprise (fund) will sign an entrustment management agreement with the management company to stipulate the management fee and other terms.
Management companies generally charge management fees and will participate in fund income sharing. The industry basically gives 20% of the distributable profits to the management company. Management companies are generally responsible for finding projects, conducting due diligence on projects, and negotiating and signing specific investment terms.