Limited partnership private equity investment fund refers to the equity investment fund established in the form of limited partnership.

From the legal point of view of limited partnership, limited partnership private equity funds also have the following characteristics:

1. The property of a limited partnership private equity fund is independent of the property of each partner. As an independent unincorporated enterprise entity, limited partnership private equity fund has independent property; For the debts of the partnership, firstly, the partnership's own property is used to pay off the debts, and the insufficient part is borne according to the different status of each partner; During the existence of a limited partnership, each partner may not require the division of the partnership property. Thereby ensuring the property independence and stability of the limited partnership private equity fund.

2. General partners and limited partners enjoy different rights and bear different responsibilities. In a limited partnership, the general partner carries out the partnership affairs, and the limited partner does not participate in the operation of the partnership; Limited partners shall be liable for the debts of the partnership to the extent of their subscribed capital contributions, and general partners shall be jointly and severally liable for the debts of the partnership. This institutional arrangement can urge the general partner to carry out the partnership affairs carefully; For limited partners, it has the advantage of controllable risks.

2. Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed.

Limited partnership consists of general partner and limited partner. General partners, that is, former partners, are mainly natural persons. Because it involves unlimited joint and several liability for the losses of enterprises, the specific requirements are stricter. If the general partner can't bear the responsibility, the interests of creditors will sometimes not be protected.

Therefore, Article 3 of the Partnership Enterprise Law in 2006 stipulates: "A wholly state-owned company, a state-owned enterprise, a listed company, a public welfare institution or a social organization may not become a general partner." The reason why it is stipulated that these subjects cannot become general partners is that limited partners are liable for the debts of the partnership enterprise to the extent of their subscribed capital contributions, and therefore, their liability is limited to the "subscribed capital contributions".

Limited partnership consists of general partner and limited partner. The general partner shall be jointly and severally liable for the debts of the partnership, and the limited partner shall be liable for the debts of the partnership to the extent of the capital contribution subscribed. Limited partnership realizes the separation of enterprise management right and capital contribution right, and can combine the advantages of enterprise management and capital, so it is the main organizational form of foreign private equity funds. Blackstone Group and Sequoia Capital, which we are familiar with, are both partnership enterprises.

Limited partnership private equity investment fund refers to the equity investment fund established in the form of limited partnership.

Private equity funds in the form of limited partnership can effectively avoid double taxation, ensure the interests of operators and owners are consistent under the condition of separation of ownership and management rights through reasonable incentive and restraint measures, promote the division of labor and cooperation between general partners and limited partners, and give full play to their respective strengths and advantages; In addition, the limited partnership private equity fund has the characteristics of low threshold, simple establishment procedure, simple and flexible internal governance structure, efficient decision-making procedure and flexible benefit distribution mechanism.

References:

Limited Partnership _ Baidu Encyclopedia Limited Partnership Private Equity Fund _ Baidu Encyclopedia?