As the name implies, the company-based private equity investment fund is a legal person-based fund, which is mainly established according to the Company Law (revised in 2005), the Provisions on the Administration of Foreign-invested Venture Capital Enterprises (2003), the Interim Measures for the Administration of Venture Capital Enterprises (2005) and other laws and regulations.

In the current business environment, because the concept of the company lasts for a long time, the company system model is clear and easy to understand, and it is more easily accepted by investors.

In this model, shareholders are investors and the final decision makers of investment, and each of them distributes voting rights according to the proportion of capital contribution.

Mode 2: Trust system

Trust private equity investment fund can also be understood as private equity trust investment, which means that the trust company invests the funds obtained under the trust plan in equity.

Its establishment is mainly based on the Trust Law (200 1), the Administrative Measures for Trust Companies formulated in 2007, the Administrative Measures for Trust Companies' Collective Funds Trust Plan (hereinafter referred to as the Trust Regulations) and the Operational Guidelines for Trust Companies' Private Equity Investment Trust Business (2008).

The advantages of adopting the trust system operation mode are as follows: with the help of the trust platform, a large amount of funds can be quickly concentrated to play the role of fund amplification; However, the shortcomings are: at present, the trust industry lacks an effective registration system. As the sponsors of the listing of enterprises, the shareholders of trust companies can't confirm whether there are problems such as holding relationship and related shareholding, and the regulatory authorities require disclosure to the actual holders of the trust.

Mode 3: Limited partnership

The legal basis of limited partnership private equity fund is the Partnership Enterprise Law (2006), the Interim Measures for the Administration of Venture Capital Enterprises (2006) and related supporting laws and regulations.

According to the provisions of the Partnership Enterprise Law, a limited partnership enterprise is established by more than two partners and less than fifty partners, and consists of at least one general partner (GP) and one limited partner (LP). The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall not carry out the partnership affairs or represent the limited partnership externally, but shall be liable for the debts of the partnership only to the extent of the capital contribution subscribed.

At the same time, the Partnership Enterprise Law stipulates that a general partner may make capital contribution through labor services, and a limited partner may not make capital contribution through labor services. This provision clearly recognizes the value of the intellectual capital of the general partner as the manager, and embodies the advantages of the limited partnership system of "money and power".

In operation, the limited partnership enterprise does not entrust the management company to manage the funds, but the general partner directly manages the assets and manages the enterprise affairs.

The main advantages of adopting the limited partnership system are: (1) the property is independent of the personal property of each partner, the rights and obligations of each partner are more clear, and the incentive effect is better; (2) Only the partners are taxed to avoid double taxation.

Mode 4: "Company+Limited Partnership" mode

In the mode of "company+limited partnership", the company means that the fund manager is a company and the fund is a limited partnership. This mode is a common operation mode of equity investment funds at present.

Due to the high risk of natural person as GP in partnership affairs and the different ideas and understandings of limited partnership system by private capital at present, the challenge of natural person GP is undoubtedly enhanced.

At the same time, in the current partnership enterprise law, there is no requirement that the general partner in a limited partnership enterprise is a natural person or a legal person.

Therefore, in order to reduce the personal risk of the management team, the model of "company+limited partnership" is adopted, that is, the investment management company is established through the management team, and then the limited partnership equity investment fund is jointly established with the natural person and legal person LP with the company as the general partner.

Due to the limited liability system in the company system, once the fund faces bad conditions, the limited liability management company can become a risk barrier, thus reducing the personal risk of the manager.

In this mode, the fund is managed by the management company, and LP and GP follow the established agreement and make decisions through the investment decision-making committee. At present, domestic well-known investment institutions mostly adopt this operation mode. There are mainly investment funds owned by Shenzhen Venture Capital, Tongchuang Ye Wei Investment, Chuangdong Investment and Chen Da Venture Capital.

Mode 5: "Company+Trust" mode

The combination mode of "company+trust" combines the characteristics of company and trust system. That is, the company manages the fund and obtains the investment funds needed by the fund through the trust plan.

In this mode, the trust plan is usually initiated by the trustee, and the investment team is entrusted as the manager or financial adviser to suggest the trust to invest in equity, and the management company can also participate in the follow-up of the project.

It should be mentioned that Article 2 1 of the Operational Guidelines for Trust Companies' Private Equity Investment Trust Business stipulates that "if the trust documents stipulate in advance, the trust company may hire a third party to provide investment consulting services, but the investment consultant shall not make investment decisions on its behalf."

This means that the manager cannot make independent investment decisions on the funds under the trust plan. At the same time, the manager or investment consultant also needs to meet several important conditions: (1) holding no less than 10% of the trust units of the trust plan; (two) the paid-in capital is not less than 20 million yuan; (3) The main members of the management team have more than 3 years of experience in equity investment business.

At present, this model is mainly used for real estate equity investment projects. In addition, some venture capital management companies that need quick working capital often use trust platforms for financing. Many trust companies such as Xinhua Trust and Hunan Trust have issued such trust plans.

Mode 6: Parent Fund (FOF)

A parent fund is a fund that invests in other funds, also known as a fund. It participates in other equity investment funds by setting up private equity investment funds.

The parent fund makes use of the advantages of its own funds and its management team to choose suitable stock funds for investment; By optimizing multiple equity investment funds, the investment risks are dispersed and reduced.

The venture capital guiding fund and industrial guiding fund initiated by local governments in China all exist in the form of parent funds. The government can effectively enlarge financial funds, select professional investment teams, guide social capital to intervene, and quickly cultivate local industries, especially emerging industries that the government hopes to support.