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I. Definition of Private Equity Fund
Private equity fund refers to a securities investment fund that raises funds from specific investors in a non-public way and invests in specific objects. Private equity funds are raised by means other than mass communication, and promoters set up investment funds to invest in securities by collecting funds from non-public multi-subjects.
20 14 12 3 1, in the insurance industry, with the pace of 20 15, the use of insurance funds has landed one after another. On the eve of New Year's Day, the CIRC approved insurance funds to set up private equity funds to support the development of small and medium-sized enterprises.
20 15 12.23 news, 17 the qualification of private fund manager of commercial banks will be revoked. Caixin According to the report of China Asset Management Network, a number of commercial banks have received the notice from the window of China Banking Regulatory Commission, and the regulatory authorities will revoke their registration qualification with China Asset Management Association according to law.
Second, the characteristics of private equity funds
The operation mode of private equity fund is equity investment, that is, through capital increase and share expansion or share transfer, the shares of unlisted companies are obtained, and profits are made through share value-added transfer. The characteristics of equity investment include:
1. The return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.
2. Equity investment is accompanied by high risks. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.
3. Equity investment can provide all-round value-added services. Private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also a key factor to attract enterprises. While meeting the financing needs of enterprises, private equity investment funds can help enterprises improve their management ability, expand procurement or sales channels, integrate the relationship between enterprises and local governments, and coordinate the relationship between enterprises and other enterprises in the industry. All-round value-added services are the highlight and competitiveness of private equity investment funds.