1, the purchase threshold is high. Private placement is only for qualified institutional and individual investors, not for public sale or promotion; At the same time, its start-up amount is high, and each investment is generally not less than 1 10,000.
2. Generally, 20% excess performance reward will be charged, subject to the contract. When private equity funds generate profits, private equity fund managers extract 20% of them as a return. However, the excess performance fee can only be withdrawn after the private equity fund hits a new high every time. 、
3. Pursuing absolute positive returns: the interests of private fund managers are more consistent with those of investors. The main reason is that private equity funds have less fixed management fees and mainly rely on excess performance fees for survival and development. Excess performance fees can only be paid in advance after each net value hits a new high. Therefore, only when investors make money can private placement make money. Therefore, private equity funds need to pursue absolute positive returns and control downside risks relatively strictly.
4. The stock investment ratio is flexible: between 0- 100%, it can be called an all-weather product, and the systematic risk of the market can be partially or completely avoided through flexible position selection.
5. Flexible operation: At present, the scale of Sunshine Private Equity Fund is usually tens of millions to hundreds of millions. At the same time, the requirements for industry concentration and equity concentration are far looser than those for public offering. Compared with public offering, its total amount is relatively small and its operation space is large. You can focus on holding one or two industries and five or six stocks, which is more conducive to the active management ability of fund managers.
6. Limited liquidity: generally, there is a 6- 12-month closure period or share lock-up period. The customer's redemption is restricted during the closed period or needs to pay a redemption fee of about 1% to 3% (the current mainstream redemption fee regulations are within this range). Please refer to the contract for details.
7. Less information disclosure: usually the net value is published once a week, once every two weeks or once a month. If the scale reaches 50 million, there must be monthly information disclosure and all products must have quarterly information disclosure.
The above is an introduction to the characteristics of private equity funds, hoping to help you.