According to the new requirements, "qualified investors" should have the corresponding risk identification ability and risk-taking ability. The amount invested in a single private equity fund cannot be less than 6,543,800 yuan. The investor's personal net assets are not less than 6,543,800 yuan, personal financial assets are not less than 3 million yuan, and the average annual income in the last three years is not less than 500,000 yuan.
Because institutional investors, such as enterprise annuities, charitable funds, social security funds and investment plans, which are established according to law and supervised by the State Council financial supervision and management institutions, have strong risk identification ability and risk tolerance. Private fund managers and employees are fully aware of the private funds they manage, so they are also recognized as qualified investors.
Organizational forms of private equity funds
Company style
The corporate private equity fund has a complete corporate structure and its operation is more formal and standardized. It is easy to set up private equity funds (such as "equity investment companies") 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:
Establish an "investment company" whose business scope includes securities investment;
The number of shareholders of the "investment company" should be small, and the capital contribution should be large, which not only ensures the nature of private placement, but also has a large scale of funds;
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";
The registered capital of an "investment company" is re-registered once a year at a specific time, and nominal capital increase or share reduction is carried out. If necessary, investors can redeem their investment at a specific time every year, and at other times, investors can transfer their shares by agreement or conduct over-the-counter transactions. "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.
However, corporate private equity funds have a disadvantage, that is, there is repeated taxation. Methods to overcome the shortcomings are:
Register private equity funds in tax havens such as Cayman and Bermuda;
Register the enterprise private equity fund as a high-tech enterprise (which can enjoy many benefits) and register it in a place with more favorable taxes;
Backdoor, that is, in the establishment and operation of the fund, unite or acquire a company (preferably a non-listed company) that can enjoy tax incentives, and take this as a carrier.
Contract type
The organizational structure of contractual funds is relatively simple. The specific approach can be:
As the manager of the fund, the securities company chooses a bank as its custodian;
Raise a certain amount to start operation, open once a month, announce the net value of the fund to the fund holders and redeem the fund once;
In order to attract fund investors, the handling fee should be as low as possible. As fund managers, securities companies charge a certain management fee according to their performance. Its advantage is that it can avoid double taxation, but its disadvantage is that it is difficult to avoid the approval and supervision of the securities management department in the process of establishment and operation.