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How to start private investment fund business
How to start private investment fund business

The establishment of private equity funds needs to exceed the financial strength and preliminary preparation of ordinary people, and the investment threshold is generally high. The following is a small collection of how to set up a private investment fund. Welcome to read and share. I hope you like it.

How to set up a private investment fund

First, private equity funds raise funds in a private way. In the United States, children's funds and pension funds in Public Offering of Fund generally attract customers by advertising through public media. According to relevant regulations, private equity funds are not allowed to use any media to advertise, and their participants mainly join through so-called "reliable investment information" or direct knowledge of fund managers.

Secondly, in terms of fundraising targets, private equity funds are only targeted at a few specific investors, and the circle is small but not low. For example, in the United States, hedge funds have very strict regulations on participants: if they participate in the name of individuals, their annual income in the last two years will be at least $200,000; If you participate in the name of the family, the family's income in the past two years is at least 300,000 US dollars; If you participate in the name of an institution, its net assets will be at least $6,543,800+0,000, and the number of participants will be limited accordingly. Therefore, the investment goal of private equity funds is very strong, which is more like an investment service product tailored for middle-class investors.

Third, unlike Public Offering of Fund's strict information disclosure requirements, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater.

In addition, a notable feature of private equity funds is that fund sponsors and managers must invest their own funds into fund management companies, and the success of fund operation is closely related to their own interests. Judging from the current international practice, fund managers generally hold 3%-5% of the shares of the fund. In case of loss, the shares owned by the manager will be used to pay the participants first. Therefore, the promoters, managers and funds of private equity funds are as close as lips and teeth, and honor and disgrace are integrated with the interests of * * * *, which also solves the inherent weakness of managers' interests and incentive mechanism in Public Offering of Fund to some extent.

What should I pay attention to when buying private equity funds?

Must have a certain risk tolerance.

According to the requirements of the new asset management regulations for qualified investors, the net assets of the company in the last 654.38+0 years are not less than 6.5438+0 million yuan, the net assets of family financial assets are not less than 3 million yuan, the family financial assets are not less than 5 million yuan, or the average annual income of the company in the last three years is not less than 4 million yuan. Therefore, we investors must meet these three points. First of all, you must be a qualified investor. Secondly, investors should have certain risk identification ability and tolerance. In addition, there must be enough investment funds.

How to buy private equity funds

1. Pay attention to choosing a good fund manager before buying a private equity fund. Before investing, it is best to have a certain understanding of the fund company, that is, the fund manager, mainly whether the fund manager has good fund management ability and whether the team is stable. These are all security factors that need to be considered, and they are also essential in the process of purchasing private equity funds.

2. Find a trust company. In China, most private equity funds are issued through trust companies. Investors entrust funds to trust companies, and then trust companies hire private fund management companies to manage the actual operation of funds. Then the funds will also be managed by the custodian bank. Finally, the report on fund operation, including net value, will be released on the platform of the trust company.

3. In terms of capital security, there is no third flow from the capital account to the trading account of the securities company, and then from the capital account to the account where the customer pays. To say the least, even if the trust company goes bankrupt, this special-purpose fund asset belongs to the fund holder and has nothing to do with the trust company. So there is no financial security risk. Private equity funds cooperate through trust company platform 1 1 year. So far, there is no financial security risk. This is a very important private equity fund purchase process.

4. Choose the type of investment. Choose the type of private equity products to invest in according to your own situation. Private equity funds mainly invest in stocks, bonds, funds and central bank bills. Now some private equity products on the trust platform can also invest in stock index futures, and some private equity products issued through limited partnerships have a wider investment scope.

Is it reliable to buy private equity funds?

Not reliable, investors in private equity funds are generally institutional investors, and their investment purpose is usually to obtain higher returns, so they will not bear greater risks, which also increases the risks of private equity funds. Therefore, although buying private equity funds can get higher returns, it is also risky and needs investors' careful consideration. If you need to invest in private equity funds, I suggest you choose formal institutions and channels to conduct full investigation and risk assessment.

Non-public: Unlike public offering funds, private equity funds openly seek investors, but sell them to specific qualified investors through private negotiation. Therefore, for many investors, we know little about private equity funds, which increases our investment risk.

Flexible operation: Compared with Public Offering of Fund, private fund investment is more flexible, and private fund managers have greater freedom of operation, unlike Public Offering of Fund, which has strict supervision on registration, declaration and information disclosure. The investment strategy is highly confidential. Therefore, if the fund manager is more capable, we can get more stable or higher returns.

But it also aggravates the security risk of our funds. Therefore, if you want to find a reliable private equity fund, you need to choose a formal fund product launched by a formal fund company. You should also have an understanding of the risk control system of fund companies.

High threshold: because the risk will be higher, the threshold of private equity funds will be higher. According to the relevant laws and regulations, the amount invested by individual investors in a private equity fund is not less than 6.5438+0 million, and then the financial assets of individual investors are not less than 3 million, or the average annual income in the last three years is not less than 500,000. Investors should have corresponding risk tolerance.

Generally speaking, the threshold for investing in private equity funds is higher, and the management of private equity funds will be more flexible. We should also have stronger anti-risk ability while obtaining higher returns, which requires more investors. As for whether it is reliable or not, it mainly depends on the specific fund products and our fund selection ability.

What does private equity fund mean?

Private equity fund refers to a fund established by raising funds from specific investors in a non-public way. According to the different ways of raising funds, funds can be divided into Public Offering of Fund and private equity funds. Public Offering of Fund refers to a fund that can be sold to the public.

Private equity funds do not pursue equity gains, but sell equity through equity transfer paths such as listing, management buyouts and mergers and acquisitions.

The scope of private equity funds is narrower than that of Public Offering of Fund, but they are all institutions or individuals with strong capital strength and high quality of capital composition, which makes the funds raised by them not necessarily inferior to that of Public Offering of Fund in quality and quantity. It can be an individual investor or an institutional investor.

The risk of private equity investment first stems from its relatively long investment cycle. Therefore, if private equity funds want to make profits, they must make some efforts, not only to meet the financing needs of enterprises, but also to bring benefits to enterprises, which is bound to be a long-term process. Moreover, the high cost of private equity investment also increases the risk of private equity investment. In addition, the high investment risk of private equity funds is also related to the poor liquidity of equity investment.