What does pe fund mean?
Fund pe, also known as private equity investment, generally invests in unlisted enterprises in the form of private equity funds. If the company goes public later, it can make a profit by selling shares, and a small number of pe foundations invest in the shares of listed companies. At present, pe fund investment pays more attention to emerging private enterprises, which are usually unable to obtain financial support from banks, but the current situation is that most active pe funds are foreign and there are few domestic related institutions.
The investment scope of private equity funds:
Investment threshold: under normal circumstances, if the fund size is below 500 million yuan, investment thresholds of 3 million yuan and 5 million yuan are more common; If the fund size is more than 500 million yuan, the investment threshold of 65.438+million yuan is more common.
Investment period: 5-8 years.
The average annualized rate of return of first-line PE funds in the past five years is 32%. Private equity funds usually take the form of limited partnership. Limited partnership private equity fund is a limited partnership established by private equity investment institutions and some qualified investors as the main body of the fund.
LP: Limited partner, that is, investor, assumes limited liability with the amount of capital contribution.
GP: General partners, that is, fund management companies, bear unlimited joint and several liabilities.
Income distribution of private equity funds;
PE funds generally invest in multiple projects in several stages, and once a project exits, it will distribute the income.
After the project exits, the principal of LP shall be paid first, and then the principal of GP shall be covered after the principal of LP is fully repaid. When there is an investment surplus, the agreed income of LP will be allocated first, and 20% of the remaining excess income will be allocated to GP and 80% to LP.