private equity investment (PE for short) is a very broad concept in finance and business, which refers to the investment in any kind of equity assets that cannot be traded freely in the stock market.
passive institutional investors (such as official pension fund pools and insurance companies) may invest in private equity investment funds, which are then managed by investment companies and invested in target companies. Private equity investment can be divided into the following categories: leveraged buyout, venture capital, growth capital, angel investment, mezzanine financing and other forms.
Private equity investment funds often control the management of the companies they invest in, and often introduce new management teams to enhance the company's value. Private equity investment companies mainly withdraw and get the return on investment in three ways: initial public offering (IPO), selling the company or merging with other companies, or recapitalizing the company.
Unlisted shares can be directly sold to investors (private placement) or other private equity investment funds specializing in secondary acquisitions. In 25, it was estimated that the global private equity investment was $135 billion, which was one fifth higher than that of the previous year, because the confidence in the global acquisition market increased.
Among them, the proportion of purchasing funds has gradually increased, from one-fifth to two-thirds, while the proportion of early investment and venture capital has gradually decreased.
private equity fund
private equity fund, also known as private equity investment fund, is an asset pool used by private equity investment companies to invest. The main organizational form of private equity investment funds is limited partnership, in which private equity investment companies act as general partners.
The fund as a whole exists as a limited partnership, while the private equity investment company acts as a general partner. Funds mainly raise money from other investors, including pension funds, financial institutions and wealthy individuals.
these investors become passive limited partners in the fund partnership organization. when the general partner finds suitable investment opportunities, he will inform these limited partners and ask them to bear a certain proportion of the investment quota, but all investment decisions are made by the general partner.
In general, the duration of a fund is ten years, during which 15 to 25 different investments will be made, and the amount of each investment will not exceed 1% of the total fund amount.