Private equity funds generally implement the partner system, which can effectively reduce the principal-agent risk under the separation of ownership and management rights. Partnership private equity fund consists of limited partners and general partners. The following is a small collection of how to become a private partner. Welcome to read and share. I hope you like it.

How to become a partner of private equity fund

1. A natural person meets any one of the three conditions: the total financial assets of an individual or family is not less than 2 million yuan, the average annual income of an individual in the last three years is not less than 200,000 yuan, and the average annual income of a family in the last three years is not less than 300,000 yuan.

2. The amount of QFII's investment in a single private equity fund shall not be less than1000000 yuan.

What is the income distribution model of private equity funds?

1. Under the principal priority return mode, the fund does not distribute the profits of a single project, but uniformly calculates the profits of all projects.

The specific distribution order of fund profits is as follows:

(1) The fund shall be returned to the limited partner first to pay off all its principal contributions (including project investment, management fees and other expenses);

(2) If the internal rate of return of the fund does not exceed the priority rate of return, the general partner will not get any royalty income. After the fund profits are fully returned to the limited partners, the rest will be distributed to all partners according to the proportion of capital contribution. Priority rate of return is the investment rate of return promised by the general partner of the fund to investors when the fund is established. The practice of American fund industry is that the priority income is usually 8% compound annualized rate. It is worth mentioning that, unlike China, the United States is a country with a very low basic interest rate. If the internal rate of return of the fund is higher than the preferential rate of return, investors will get the preferential rate of return based on all their principal.

(3) After the investor gets the priority return, the general partner will get 20% of the priority return royalty income of his limited partner through the catch-up clause.

(4) The remaining fund profits are all distributed between general partners and limited partners according to the proportion of 20% and 80%.

2. Another basic mode of profit distribution of private equity funds is the project distribution mode, that is, every time the fund withdraws from an investment project, the investment income of the project will be distributed between the general partner and the limited partner.

There are different ways to assign items. Strict project allocation mode is that the general partner accounts for the profit and loss of each project separately. Once the limited partner recovers the investment and priority return of a project, the general partner can collect the commission income. Assuming that the fund invests in five projects at the same time, the general partner can collect commission income after the income of one project, regardless of whether the other projects are losing money. Under this model, the general partner will lose the motivation to dispose of loss-making projects.

Another common distribution model by project is to calculate all realized gains and losses of the fund. In this model, the fund's income is first used to repay the limited partners' investment and priority returns in all withdrawn projects. If a project loses money, the next profitable project needs to fill the loss first, and then calculate the possible preferential return and commission income of the general partner.

What does it take to set up a private equity fund?

Article 2 of the Measures for the Registration of Managers of Private Investment Funds and the Filing of Funds (for Trial Implementation) stipulates that the private investment funds mentioned in these Measures (hereinafter referred to as private investment funds) refer to investment funds established by raising funds from qualified investors in a non-public way, including companies or partnerships whose assets are managed by fund managers or general partners for investment activities.

The so-called application for private equity fund license is similar to the business license of enterprise operation, which is divided according to the investment scale.

1. The registered capital of a private enterprise shall not be less than 30 million yuan, and the investment of a single investor shall not be less than1000000 yuan.

2. The registered capital of the private equity fund enterprise is not less than 500 million yuan, and the paid-in capital at the time of establishment is not less than 654.38+0 billion yuan; The investment amount of a single investor is not less than 6,543,800 yuan+0,000 yuan. Determine your business scope according to your investment. The higher the investment, the higher the business scope.

What are the requirements for private equity fund license application?

1. According to the Securities Investment Fund Law, the fund manager is a legally established company or partnership. A natural person cannot be registered as a private fund manager.

2. The registered capital should be above100000.

3. At least three senior managers have the qualification of private equity fund. Those who meet one of the following conditions can be considered as qualified for private placement: passing the private placement qualification examination organized by the fund industry association; Engaged in investment management related business in the last three years; Other circumstances identified by the fund industry association.

4. The applicant institution has the premises, facilities and basic management system to meet the business needs.

How do private fund managers submit information?

1. The private equity fund manager shall update the relevant information of the managed private equity funds within 5 working days after the end of each month, including the fund size, unit net value, number of investors, etc.

2. The private equity fund manager shall update the relevant information of non-securities private equity funds such as private equity funds managed by him within 10 working days after the end of each quarter, including subscription scale, paid-in scale, number of investors, main investment direction, etc.

3. Private fund managers should update the basic information of private fund managers, shareholders or partners, senior managers and other employees, and managed private funds. Within 20 working days after the end of each year.