Huarui's idea determines their system design in venture capital funds, and these "rules of the game" ensure that Huarui's idea can be realized. "Huarui Venture Capital Fund has its unique six characteristics in system design."

1. Legal and compliant company

Huarui manages a number of investment funds, such as Jiayin Venture Capital Fund, Yin Rui Venture Capital Fund, Mulcaster Venture Capital Fund, Hongshi Venture Capital Fund, Shi Lan Venture Capital Fund and Huarui M&A Fund. In 2007 alone, the number of investment projects reached 10, making it the most active private equity investment institution and investment management institution in Zhejiang with excellent investment performance.

It is worth mentioning that all funds under Huarui are registered in the administrative department for industry and commerce in the form of venture capital companies. "The fund established by the company system is legal and compliant, which legally guarantees the rights and interests of investors and the right to participate in governance, which is conducive to investors controlling risks and enjoying relevant preferential policies of the government. This is very necessary in China where private equity investment is just emerging. "

2. Commitment to investment, in place by stages.

Up to now, Zhejiang famous enterprises including Serene, Du Nan Holdings, Oaks Group, Yongli Group, Hu Qingyutang, Wenguang Investment, Ningbo Tai Fang, Minsheng Pharmaceutical, Xiangsheng Real Estate, Liyuan Group and Jiuding Investment have become shareholders of Huarui Venture Capital Fund. Compared with most funds, the funds of all shareholders of Huarui Fund are "committed by stages and put in place".

3. Collective decision-making, one vote veto

Huarui's venture capital fund consists of the board of directors appointed by shareholders who have contributed more than 65,438+00%. Any project investment must be decided by the board of directors collectively and rejected by one vote. Only projects agreed by all directors can be invested.

In European and American countries, LP (Limited Partner) will never interfere with the specific investment decisions of GP (General Partner or Executive Partner) after the capital contribution, and GP will report to LP several times a year. Most of what LP gives GP is to provide advice or help with contacts and resources when GP needs it.

4. Multi-party supervision and risk control

All funds issued by Huarui are collectively decided by the board of directors, and the board of supervisors accepts the supervision of intermediary institutions such as banks and auditors to ensure that systemic risks are effectively controlled.

5. Capital operation and zero-cost management

Although Huarui's funds are all established by company system, they are completely managed by funds. All the investment management affairs of the company are entrusted to Zhejiang Huarui for management, and no one is raised, no car is bought, and no direct management expenses are borne. The manager's management fee is linked to the fund's annual income, so as to realize progressive subsection charging. When the income of the fund reaches 50%, the manager will charge a management fee of 9.5%, while the international management fee is 20%.

Huarui generally has a proportional contribution to its funds, and in the case of losses in the funds, its proportional contribution also gives priority to the responsibility for losses.

6. Shareholders have priority and pay dividends in full.

"We advocate full dividends on the income generated by the fund, so that the rights and interests of shareholders can be realized in time." Lives in Pei Min.