First of all, fund managers are mixed. There are different thresholds for private fund managers in different places, some require the establishment of equity management companies, and some can serve as managers only by investment management companies or consulting companies, and there are almost no legal norms for the personnel requirements of management companies. In addition, the carrier limited partnership of private equity funds is the most flexible organizational form, and there are many irregularities in its legal procedures such as capital contribution, capital verification, capital reduction and liquidation.
Second, related party transactions are full of them. Compared with the traditional Pre-IPO private equity funds, the related transactions of real estate private equity funds are more common, and the fund managers themselves come from real estate companies or are inextricably linked with real estate companies. Whether such private equity funds can ultimately ensure the interests of investors is still in doubt.
Real estate private equity funds have always been dominated by industry self-discipline, among which related transactions and conflicts of interest have always lacked supervision. When real estate enterprises invest in their own projects after setting up funds, whether they can seriously and fairly conduct due diligence, risk assessment and negotiation of commercial terms of the projects will directly determine the safety of investors' funds.