What does private equity fund mean?

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. To put it simply: no publicity, no public offering, no promise of income, no publicity of low risk. You can only publicize to qualified investors with risk tolerance, and the starting point of the fund you buy should be 654.38+00,000.

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 New Year's Eve, China Banking and Insurance Regulatory Commission 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 commercial bank's private fund manager qualification will be revoked. Caixin Com reported that a number of commercial banks have received the notice from the CBRC window, and the regulatory authorities will revoke their registration qualification with China Asset Management Association according to law.

1. Private equity funds are not as open and transparent as Public Offering of Fund, so the risks of private equity funds are relatively high, so investors who buy private equity funds must be recognized as qualified investors. In addition, the subscription fee is generally 1%, and the total * * * is10/0000.

2. After the subscription of private equity funds, the contract will be closed. If investors redeem private equity funds within the closed period, they generally need to pay a redemption fee of 3%, but if they redeem after the closed period, they will be exempted from the redemption fee.

3. Private equity funds are established by fund companies according to law, and they need to abide by the Securities Investment Fund Law and the Interim Measures for the Supervision and Administration of Private Equity Funds. After the establishment of the fund, it shall be implemented in strict accordance with the requirements of the CSRC.

The operation mode of private equity fund is equity investment, that is, obtaining shares of unlisted companies through capital increase and share expansion or share transfer, and making profits through share value-added transfer. The characteristics of equity investment include:

1. The return on equity investment is very rich. Unlike debt investment, which earns a certain percentage of interest income from invested capital, equity investment receives dividends from the company's income in proportion to its 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.