"Private fund" is very new in China, and many enterprises don't know what private fund is. However, private equity funds have developed quite maturely abroad. Simply put, private equity funds invest in enterprises through private placement, not in the stock market, which is its most basic feature. In this way, it is very direct and easy to solve the financing problem of small and medium-sized enterprises. American Enterprise Growth Association is an organization that unites a large number of small and medium-sized enterprises, small and medium-sized private equity funds and some intermediaries in the United States. Their task is to combine private equity funds with small and medium-sized enterprises.

Main organizational forms of private equity investment

1, limited partnership

Limited partnership is the main organizational form of American private equity funds.

On June 1 day, 2007, China's "Partnership Enterprise Law" was formally implemented, and a number of limited partnership equity investment enterprises such as Qingdao Hao were established one after another.

2. Trust system

Equity investment through trust plan is also a typical form of private equity investment in Yangguan.

3. Corporate style

The corporate private equity fund has a complete corporate structure and its operation is more formal and standardized. At present, it is convenient to set up private equity funds (such as "certain investment company") in China. 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. For example:

(1) Establish an "investment company", and its business scope includes securities investment;

(2) The number of shareholders of the "investment company" should be small, 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 funds of the "investment company" are 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 the "investment company" is re-registered once a year at a specific time, 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 every year, and at other times, investors can transfer their shares by 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 only redeemed once a year.

However, corporate private equity funds have a disadvantage, that is, there is repeated taxation. Methods to overcome the shortcomings are:

(1) registered private equity funds in tax havens such as Cayman and Bermuda;

(2) Register the enterprise private equity fund as a high-tech enterprise (which can enjoy many preferential treatments) and register it in a place with relatively favorable tax;

(3) Backdoor, that is, in the establishment and operation of the fund, joint or acquisition of an enterprise (preferably a non-listed company) that can enjoy tax incentives, and take this as a carrier.