1. What is a private equity fund?
Private equity investment (also known as private equity investment or private equity fund) is a very broad concept, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market. Passive institutional investors may invest in private equity investment funds, which are then managed by private equity investment companies and invest in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms. Private equity investment funds generally control the management of the companies they invest in and often introduce new management teams to enhance the company's value.
Fund custody: Fund custody means that commercial banks accept the entrustment of fund managers and represent the interests of fund holders. With the continuous development of asset management business in Public Offering of Fund, the fund custody market is becoming increasingly popular.
Second, why manage private equity funds?
1. The Securities Investment Fund Law requires that the custodian of fund funds can only be a commercial bank with a custody license;
2. The custodian bank will exercise the function of keeping funds, or audit the occurrence and use of things that investors lose money after the fund company goes bankrupt;
3. To put it bluntly, it is to prevent fund companies from running;
4. The Bank is a fund custodian bank responsible for fund management and supervision.
Third, how to obtain the qualification of comprehensive custody business of private equity funds of brokers?
According to the Administrative Measures on Custody of Securities Investment Funds, the Interim Provisions on Custody of Securities Investment Funds by Non-bank Financial Institutions and the Qualification Examination Process for Non-bank Financial Institutions to Apply for Fund Custody issued by People's Republic of China (PRC) Securities Regulatory Commission, the review focuses on the applicant's settlement method, staffing, department setting, software and hardware configuration, and custody business system. The specific business shall be the responsibility of the fund institution supervision department of the CSRC, and shall be issued by the fund institution supervision department of the CSRC after approval.
However, according to the letter number. 20 14 1 172 notice of the securities fund institution department of the CSRC on doing a good job in the supervision of the comprehensive custody business qualification of private equity funds and the payment of customer funds consumption services. The CSRC entrusts the examination and approval of the administrative license for the comprehensive custody business qualification of private equity funds to China Securities Investor Protection Fund Co., Ltd. by administrative entrustment.
2065438+On September 9, 2004, China Securities Investor Protection Fund Co., Ltd. issued the document "Bao Zheng Fa 20 1495" to various securities companies, which specified the acceptance, evaluation and approval of the administrative license for comprehensive custody of private equity funds. After approval, the China Securities Investor Protection Fund Company issued the Letter of XX No Objection on the Comprehensive Custody of Private Equity Funds by XX Securities Co., Ltd. with the letter of guarantee No.201X.
4. Can private equity funds be issued without custody?
Private placement funds shall be managed by fund custodians. If the fund contract stipulates that private equity funds shall not be managed, the institutional measures and dispute settlement mechanism for ensuring the property safety of private equity funds shall be clearly defined in the fund contract.
To manage private equity funds, the private equity fund custodian shall examine and confirm the fund-related information disclosed by the private equity fund manager to investors, such as net asset value, net fund share value, redemption price of fund share, regular fund report and regularly updated prospectus, according to the relevant laws and regulations, the provisions of China Securities Regulatory Commission and China Fund Industry Association and the provisions of the fund contract.
We also need to make it clear that the comprehensive custody service of private equity funds refers to the services such as product filing, trading system and valuation accounting provided by securities companies for private equity fund management institutions. , which belongs to the extension service of brokerage business and margin trading business of securities companies. Therefore, a securities company that has obtained the comprehensive custody service of private equity funds but has not obtained the qualification of fund custody cannot serve as the custodian of private equity funds. The two are not the same concept.
Can private equity funds be issued without custody? The law does not clearly stipulate that private equity funds must be entrusted, and if not, a relatively perfect mechanism must be established to solve the problems encountered by private equity funds. However, whether private equity funds are managed must be supervised by relevant departments. Lawyer Bian Xiao reminded that when choosing a fund custodian, you must choose an institution that has obtained legal qualifications.