Second, Silk Road Fund can be regarded as PE (Private Equity Fund), but its payback period is longer than that of ordinary PE.
The difference between Silk Road Fund and AIIB is that AIIB is an intergovernmental multilateral development institution in Asia. Under its framework, all member States must contribute capital and mainly provide loans. Silk Road Fund, because of its PE-like attributes, is mainly aimed at those who have funds and want to invest, and equity investment may account for a larger proportion.
The investment cycle of Silk Road Fund is relatively long, but the pursuit of income and return does not include the sources of foreign aid or donations.
The investment direction of Silk Road Fund is strategic medium and long-term projects, and equity investment funds can also cooperate with other financing models. In the context of the great development of the Belt and Road, some funds that can make medium-and long-term commitments need to be used for projects and capacity building related to the Belt and Road, including the development of related industries and the construction of infrastructure such as communications and roads.
Silk Road Fund will adhere to the concept of commercial operation, mutual benefit and win-win, openness and tolerance, respect international economic and financial rules, and invest in infrastructure, resource development, industrial cooperation, financial cooperation and other fields through various market-oriented ways to promote the common development and prosperity of * * *, and realize reasonable financial benefits and medium-and long-term sustainable development.
In its operation, the fund has always emphasized the direction of "marketization, internationalization and specialization" and the principle of "docking, high efficiency, cooperation and openness".