1. Company system As the name implies, the company-based private equity investment fund is a legal person fund, which is mainly established in accordance with the Company Law (revised in 2005), the Provisions on the Administration of Foreign-invested Venture Capital Enterprises (2003) and the Interim Measures for the Administration of Venture Capital Enterprises (2005). In this model, shareholders are investors and the final decision makers of investment, and each of them distributes voting rights according to the proportion of capital contribution.
2. Trust-type private equity investment fund can also be understood as private equity trust investment, which means that the trust company invests the funds obtained under the trust plan in equity. The advantages of adopting the trust system operation mode are as follows: with the help of the trust platform, a large amount of funds can be quickly concentrated to play the role of fund amplification; However, the shortcomings are: the trust industry lacks an effective registration system. As the sponsors of the listing of enterprises, the shareholders of trust companies can't confirm whether there are problems such as holding relationship and related shareholding, and the regulatory authorities require disclosure to the actual holders of the trust.
3. The legal basis of limited partnership limited partnership private equity fund is the Partnership Enterprise Law (2006), the Interim Measures for the Administration of Venture Capital Enterprises (2006) and related supporting regulations. In operation, the limited partnership enterprise does not entrust the management company to manage the funds, but the general partner directly manages the assets and manages the enterprise affairs. The main advantages of adopting the limited partnership system are: the property is independent of the personal property of each partner, the rights and obligations of each partner are more clear, and the incentive effect is better; Only partners are taxed to avoid double taxation.
4. "Company+Limited Partnership" Mode In the "Company+Limited Partnership" mode, the company means that the fund manager is a company and the fund is a limited partnership. This mode is a common operation mode of equity investment funds. In this mode, the fund is managed by the management company, and LP and GP follow the established agreement and make decisions through the investment decision-making committee. At present, domestic well-known investment institutions mostly adopt this operation mode.
5. "Company+Trust" mode The combination mode of "company+trust" combines the characteristics of company and trust system. That is, the company manages the fund and obtains the investment funds needed by the fund through the trust plan. In this mode, the trust plan is usually initiated by the trustee, and the investment team is entrusted as the manager or financial adviser to suggest the trust to invest in equity, and the management company can also participate in the follow-up of the project.
6. Parent Fund (FOF) A parent fund is a fund that specializes in investing in other funds, also known as a fund in a fund. It participates in other equity investment funds by setting up private equity investment funds. The parent fund makes use of the advantages of its own funds and its management team to choose suitable stock funds for investment; By optimizing multiple equity investment funds, the investment risks are dispersed and reduced.
What does private equity fund mean? Private equity fund is a fund engaged in private equity (non-listed company equity) investment. It mainly includes investing in the equity of non-listed companies or the non-publicly traded equity of listed companies. The pursuit is not equity income, but the profit from selling equity through equity transfer paths such as listing, management buyout and merger.