The net value of private equity fund refers to the residual value of fund assets MINUS liabilities, indicating the value of each fund share. The following is how to calculate the net value of private equity sub-funds raised by Bian Xiao. Welcome to read and share. I hope you like it.
How to calculate the net value of private equity sub-funds
The net asset value of a fund refers to the balance of the total market value of fund assets calculated at fair value after deducting liabilities at a certain fund valuation point, which is the rights and interests of fund share holders. The process of calculating fund assets at fair price is the valuation of the fund. Fund valuation is the key unit to calculate the net asset value, that is, the net asset value represented by each fund unit. The formula for calculating the net asset value of fund units is: net asset value of fund units = (total assets-total liabilities)/total number of fund units.
Among them, total assets refer to all assets owned by the fund (including stocks, bonds, bank deposits and other securities, etc.). ) calculated at fair price. Total liabilities refer to liabilities arising from fund operation and financing, including various expenses payable to others and interest payable on funds. The total number of fund shares refers to the total number of fund shares issued at that time. Fund valuation is the key to calculate the net asset value of fund units. Funds usually invest in various investment instruments in the securities market, such as stocks and bonds. Because the market price of these assets is constantly changing, only by recalculating the net asset value of the unit fund every day can the investment value of the fund be reflected in time.
What is the stock source of private equity companies?
Equity investment: you can obtain shares of private equity companies through equity investment. Investors, such as private equity investment funds, inject capital into private equity companies in exchange for their equity. In this way, the shares of private equity companies can be formed.
Equity financing: Private equity companies can obtain equity investors' funds through private equity financing and issue equity to investors in the form of stocks. By buying these stocks, investors become shareholders of private equity companies.
Is the stock of private equity firm credible?
Whether the stocks of private equity firms are credible or not depends on the due diligence of specific private equity firms and investors. Shares of private equity companies are usually only open to qualified investors, who have relatively certain financial strength and investment experience to evaluate and choose investment opportunities.
Before investing in the stocks of private equity companies, investors need to conduct full due diligence, including evaluating the management team, performance, project quality and risk control measures of private equity companies. In addition, it is necessary to understand the market environment and industry prospects of private equity companies in order to make more informed investment decisions.
However, it should be noted that the private equity market is relatively opaque, with limited information disclosure and high investment risk.
Can private equity firms buy and sell stocks?
It's possible. The specific transaction process is as follows
1. Make a trading plan: Private equity firms need to make a reasonable trading plan according to their own investment strategies and market conditions.
2. Choosing a securities broker: Private equity firms need to choose a suitable securities broker as an intermediary for trading.
3. Opening a securities account: Private equity companies need to open a securities account with a securities broker in order to conduct stock trading.
4. Order transaction: Private equity firms place orders in securities accounts for stock trading according to the trading plan.
5. Delivery and settlement: After the transaction is completed, the private equity firm needs to carry out delivery and settlement, including stock delivery and fund settlement.
The meaning of private equity fund
Private equity fund is called the financial concept corresponding to Public Offering of Fund in foreign countries. It is a kind of collective investment that is raised privately and publicly from specific investors, and is often called "underground fund" in China's financial market.
There are two kinds of private equity funds commonly used in the financial market, one is contractual private equity funds based on signing entrusted investment contracts, and the other is corporate private equity funds based on investing in joint-stock companies. At present, the more popular private equity funds in China are generally contractual private equity funds.
From the legal nature, contractual private equity fund is essentially a trust legal relationship, and its parties include promoters (fund managers), investors (fund share purchasers) and beneficiaries (generally investors or fund share holders). Investors entrust trust funds to fund managers through contracts (trust contracts); Fund managers use fund funds for securities investment or industrial investment in their own names. Investment gains are shared by share holders, and investment losses are also shared by fund share holders. At the same time, the fund manager receives remuneration as agreed. Before the introduction of relevant laws and regulations to adjust private equity funds in China, we can supervise such private equity funds with reference to the relevant provisions of the Trust Law.