1. More fixed income and less floating income.
Different from traditional Pre-IPO private equity funds, real estate private equity funds rarely adopt pure floating income structure. On the contrary, the promoters (mainly financiers) of real estate private equity funds will give investors a promise of fixed income more or less through the design of fund structure and transaction structure.
In fact, due to the obvious fluctuation of the real estate industry at this stage, it is difficult for ordinary real estate private equity funds to exclude investors' risk concerns if they do not adopt the fixed income model, which will further cause great obstacles to fund raising. On the other hand, for real estate enterprises, if the real estate industry continues to improve after the rebound, the fixed fund model will ensure that they get most of the profits from project development.
2. Multi-priority, suboptimal structure and less structure with the same share and the same weight.
As a way to give investors a fixed income commitment, real estate private equity funds generally learn from the "priority, inferiority" structure of trusts. Simply put, investors in real estate private equity funds are generally "priority partners". On the basis of the total investment of the priority partner, the housing enterprise itself or the fund management company or its affiliated enterprises will "match" 20%-30% of the funds as "inferior partners"; Before the senior partner fully recovers its investment principal and investment return calculated by fixed income, the junior partner shall not recover its capital contribution or distribute any income. In principle, the above statement will be reflected in the partnership agreement of real estate private equity funds, which is equivalent to the real estate enterprises with financing needs giving investors a certain degree of protection within the fund structure. It is noteworthy that some real estate private equity funds have gradually begun to raise inferior partners from the society. If this model is popularized, not only will the pressure of capital and guarantee of real estate enterprises be greatly reduced, but the audience of real estate private equity funds will also be expanded, so as to better meet the needs of investors with different income needs and different risk-taking abilities.
3. More mezzanine investment and less equity investment.
At present, the mainstream investment mode of real estate private equity fund industry adopts the "mezzanine investment" mode of "equity creditor's rights", that is, after holding the equity of real estate project company through equity transfer, it makes shareholder loans to the project company as a shareholder. The resulting exit methods are: creditor's rights, repayment of principal and interest; Part of the equity is repurchased by the developer. In principle, the two parties will sign a fixed repurchase agreement, such as agreeing on what price to buy back the equity after one year.