Investors need to understand the basic concepts and characteristics of private equity funds before trading them. Here's how to launch a private equity fund raised by Bian Xiao. Welcome to read and share. I hope you will like it.
How to launch private equity fund
1. Private equity institutions design investment paths and fund models (managed, structured, etc.). ).
2. After determining the custodian institution, the manager shall assist in drafting fund contracts, custody agreements and other agreements.
3. Configure the system environment and backup measures required for fund operation according to product information and characteristics, including custody, outsourcing and other systems.
What does it mean to buy a private equity fund?
M&A fund refers to a fund that focuses on enterprise mergers and acquisitions. Its usual operation mode is to participate in or gain control of the target enterprise by means of equity acquisition, and then improve the asset quality and operation level of the enterprise through restructuring and asset replacement, and then obtain M&A's income through premium sale after holding for a period of time. At present, the operation of M&A fund is mainly leveraged buyout. Unlike growth funds, which invests in entrepreneurial enterprises and has no interest in control, it chooses mature enterprises with the goal of gaining control and management rights. As a fund form developed from European and American countries in the mid-20th century, M&A fund is a typical private equity fund and has become the mainstream model of PE in mature foreign markets.
Forms of private equity investment funds
The most common organizational form of private equity investment fund is limited partnership company, which is usually composed of general partners and limited partners. As a general partner, once the investment project agreement is signed, the senior managers will actively participate in the management of the enterprise as shareholders, and control and support the development of the investment enterprise. Therefore, compared with the shareholders of ordinary companies, the shareholders of private equity investment companies can more accurately understand the advantages and potential problems of enterprises, provide a series of management support and consulting services for enterprises, and realize the maximum value-added and benefit sharing of enterprises. In this way, the institutional arrangement of private equity investment effectively solves the principal-agent problem, which is another reason for the rapid development of private equity investment.
What are the private equity investment funds?
Equity investment is a very old industry, but private equity (PE) investment is a new thing that has achieved rapid development in recent 30 years.
The so-called private equity investment refers to the capital operation process of non-listed enterprises with high growth, providing them with corresponding value-added services such as management, so as to withdraw through IPO or other means and realize capital appreciation. The interest of private investors lies not in having dividends and operating the invested enterprise, but in withdrawing from the enterprise and finally realizing the investment income.
In order to diversify investment risks, private equity investment is conducted through private equity investment funds (hereinafter referred to as PE funds, private equity funds or funds). Private equity investment funds raise funds from large institutional investors and well-funded individuals by private placement, then seek opportunities to invest in unlisted enterprises, and finally get the investment return of the whole fund through active management and withdrawal.
PE fund, like stock exchange private equity fund, is essentially a financial management tool, but its initial investment threshold is higher, the investment cycle is longer and the investment return is more stable, which is suitable for long-term investment of large-scale funds.
Special attention: different regions need different conditions and materials, so detailed communication is needed to understand what materials need to be prepared.
When is the best time to buy a fund?
There is no suitable buying point for fund investment, so it is not recommended to study buying points, because countless cattle people have been studying this for hundreds of years, and it is still a common unsolved problem today. Learning to buy things is nothing more than gambling.
Different fund types have different buying skills, but they are all the same. For funds or stocks, as well as other financial assets, there is a problem of buying time, which itself cannot be solved well. Persistence in buying time often leads to poor investment results, just like most people who speculate in stocks study the best buying point all day in an attempt to predict the stock market and beat the market.