Is it legal to split and transfer the shares of private equity funds? According to relevant laws and regulations, a qualified private equity fund is a unit with an investment of no less than 6,543,800 yuan, a unit with a net asset of no less than 6,543,800 yuan, an individual with a financial asset of no less than 3 million yuan, and an individual with an average annual income of no less than 500,000 yuan in the last three years.

The definition of qualified investors is conducive to the risk control of private equity fund managers and is a protective measure for the private equity fund industry. But at the same time, small investors with high risk preference are excluded from the scope of private investors. Whether the share of private equity funds can be sold separately or purchased collectively has become a controversial issue in the industry.

Is it legal to split and transfer the shares of private equity funds? Two of them are highly controversial.

1, the dividing line between private equity fund share division and transfer and illegal fund-raising.

According to the Measures for Banning Illegal Financial Institutions and Illegal Financial Business Activities, without the approval of the People's Bank of China, an activity that absorbs funds from unspecified social objects, issues certificates and promises to repay the principal and interest within a certain period of time. The split transfer of private equity fund shares is essentially a directional entrusted investment model, which is not enough to fully meet the definition conditions of illegally absorbing public deposits. However, if investors are promised expected annualized expected returns and investment returns within a specific period, this kind of commitment has the characteristics of "repaying principal and interest", which is in line with the characteristics of illegal fund-raising.

2. Division of split transfer of private equity fund shares and unauthorized issuance of stocks, companies and corporate bonds.

In essence, issuing bonds to absorb deposits belongs to the category of debt financing. If it is asset management in the general sense, it is essentially different from issuing bonds. However, if the asset manager has a clear commitment to repay the principal and interest to investors, and the shares subscribed by investors have the characteristics of standardized products, and the asset manager provides trading conditions or convenience for such shares, it has the same characteristics as the behavior of issuing bonds.